Ethereum Layer-2 Networks Drive $13.5B Stablecoin Surge as Market Hits $205B

iconKuCoin News
Share
Copy

As per a report on Cointelegraph, Ethereum layer-2 networks now hold a record $13.5 billion in stablecoins, reflecting the rising adoption of crypto assets in real-world transactions. According to data from Tie Terminal and Cointelegraph Markets Pro, the total stablecoin market capitalization has reached $205 billion. Dominating this market are Tether (USDT), USD Coin (USDC), and Ethena’s USDe. Arbitrum One leads among layer-2 networks, locking $6.75 billion in stablecoins, followed by Base with $3.56 billion. The significant growth of stablecoins on layer-2 platforms underscores their importance in making crypto transactions faster and more cost-effective.

 

Source: Cointelegraph 

 

The stablecoin market as a whole has shown consistent growth throughout 2024, surpassing $200 billion in December for the first time since March 2022. Tether (USDT), the largest stablecoin by market cap, rose from $91.7 billion at the start of the year to over $140 billion by December 19, according to DefiLlama. Meanwhile, USD Coin (USDC) reached $42 billion, though it remains below its June 2022 peak of $55.8 billion. This surge in stablecoin circulation highlights their utility in payments, remittances, and decentralized finance (DeFi) applications, reinforcing their role as a “killer use case” within the crypto ecosystem.

 

Looking ahead to 2025, stablecoins are poised for further growth. Analysts like Bitwise’s Matt Hougan and Ryan Rasmussen predict that the market could double to $400 billion if stablecoin regulations are passed in the U.S. Similarly, B2BINPAY CEO Arthur Azizov sees potential for explosive growth due to the European Union’s MiCA regulations. As the crypto economy expands, stablecoins are set to play an even more integral role in global finance, bridging the gap between traditional payments and blockchain technology.

Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.