Key Notes
- Stablecoins locked on Ethereum Layer-2 platforms reached $13.5 billion, led by Arbitrum with $6.75 billion.
- Tether (USDT) soared to $140 billion market cap in 2024, dominating stablecoins alongside USDC’s $42 billion peak.
- Ethereum’s Dencun upgrade boosted Layer-2 rollups like Base and Taiko, driving 11+ million daily transactions combined.
The stablecoin ecosystem is hitting new milestones, with Ethereum layer-2 networks at the center of the action. As of December 20, stablecoins worth $13.5 billion are locked on Ethereum’s layer-2 platforms amid growing adoption in crypto payments and remittances, according to Tie Terminal’s latest data.
Photo: The TIE Terminal
Arbitrum One and Base have emerged as key contributors to this development. Data from DefiLlama indicates that Arbitrum accounts for $6.73 billion in stablecoin value, while Base holds $3.56 billion. Together, these networks have bolstered the overall stablecoin circulation, which now boasts a combined market capitalization of $205 billion across all blockchains.
Photo: DefiLlama
The rising adoption of stablecoins highlights their importance in the current cryptocurrency cycle. According to Matthias Seidl, co-founder of growthepie.xyz, stablecoins have become one of the most impactful use cases, with layer-2 platforms achieving record levels of locked value.
One of cryptos killer use-cases in this cycle are Stablecoins. Layer 2s just reached a new ATH in stables locked on them.
Almost $12B is now used on all Layer 2s combined.
For perspective:
– BSC has $6.6B
– Solana has $4.7B
– Avalanche has $2.3B pic.twitter.com/7CcYHGTNAD— matze | growthepie.xyz 🥧📏 (@web3_data) December 16, 2024
Tether (USDT) Surpasses $140 Billion by Year End
Among the leaders, Tether
USDT
$1.00
24h volatility:
0.0%
Market cap:
$139.85 B
Vol. 24h:
$102.70 B
dominates the stablecoin space. Starting 2024 with a $91.7 billion market cap, USDT grew steadily month by month to surpass $140.88 billion by December 19. Meanwhile, Circle’s USD Coin
USDC
$1.00
24h volatility:
0.0%
Market cap:
$42.96 B
Vol. 24h:
$9.63 B
reached its peak for 2024 at $42 billion. Despite this, it remains far from its all-time high of $55.8 billion in June 2022.
Photo: DefiLlama
The steady rise in stablecoin adoption was noted after November 7, when the global market capitalization sat at $123 billion. Since then, an upward trend has continued, signaling growing confidence in stablecoins as a reliable medium of exchange within the crypto ecosystem.
Ethereum’s broader ecosystem also received a boost as stablecoins increasingly play a role in real-world applications. From remittances to global transactions, their utility reflects why these digital assets are vital to the crypto space.
Ethereum Upgrades Shift Activity to Layer-2 Networks
Layer-2 solutions have seen a sharp rise in usage following Ethereum’s Dencun upgrade earlier this year, which reduced transaction costs and boosted roll-up activity. Base now logs over 8 million daily transactions, compared to just 400,000 in March. Taiko also recorded over 3 million daily transactions, underscoring its momentum, according to Growthepie.
Photo: Growthepie
In contrast, Linea has seen a worrying decline, falling to 200,000 daily transactions from its previous highs of over 800,000. Despite this, Layer-2 rollups are driving Ethereum’s activity, helping to temporarily turn ETH supply deflationary. Blob usage, introduced in the Dencun upgrade, has played a key role, burning over 1,200 ETH since its implementation.
Arbitrum continues to lead in stablecoin market share, trailed by Base and Optimism. The introduction of Blobs, which temporarily stores data to lower costs, has further cemented Layer-2’s importance in Ethereum’s roadmap. Vitalik Buterin, Ethereum’s founder, views this as a medium-term goal for sustaining ETH deflation.
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With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.
