Ethereum continues to be the main candidate for stablecoin operations, showcasing impressive dynamics.
Growth of Stablecoin Market on Ethereum
According to The Block’s Data and Insights newsletter, Ethereum retains its position as the preferred blockchain for stablecoin activity. The platform hosts $35 billion in USDC and $67 billion in USDT. The analytic firm argues that ETH's dominance emphasizes its role as the primary settlement layer for stablecoin transactions. It is expected that the stablecoin ecosystem will significantly expand in 2024, with the total supply increasing by 63%, from $138 billion to $225 billion.
Ethereum's Dominance in P2P Transfers
The data analytics platform Dune Analytics reported that the cumulative volumes of stablecoin transfers continued to show steady growth. Ethereum and TRON remain the dominant players in this market. Ethereum accounts for 55% market share, whereas TRON reduced from 35% to 28%. Meanwhile, Solana showed significant growth, increasing from 1.6% to 5.4%.
Liquidity Distribution and Competition
Data shows that 91% of the total supply of stablecoins remains backed by cash reserves or short-term government securities. 8.5% of stablecoins are supported by over-collateralized crypto-assets, such as Ethereum and staking. Stablecoin transfer volumes varied across different blockchains, with Base showing significant growth, while TRON and Ethereum accounted for the bulk of P2P transaction transfers.
Ethereum continues to maintain leadership in the stablecoin market, demonstrating resilience and ease of use. Further expansion of the ecosystem is expected as its importance increases and new regulators are introduced.
