Ethereum-based stablecoins hit 750,000 weekly users driven by USDT and USDC

Ethereum-based stablecoins have reached a significant milestone, with over 750,000 unique weekly users as of June 2025. This surge in user activity is primarily driven by USDT and USDC, two major stablecoins that have been instrumental in the adoption of decentralized finance (DeFi). The increased usage reflects a renewed preference for Ethereum's Layer-1 solutions over Layer-2 alternatives, influenced by reduced fees and enhanced transactional efficiency. This trend indicates a higher level of market confidence in stablecoins, which are cryptocurrencies designed to minimize price volatility by pegging their value to a reserve asset.

Major companies such as Tether and Circle are leading this surge by providing the necessary infrastructure for stablecoin transactions. New entrants like PayPal's PYUSD are also beginning to make a significant impact on the ecosystem. The growing adoption of stablecoins is not only boosting on-chain activity but also increasing transaction fee revenue for the Ethereum network. This trend is seen as a positive shift, driving both retail and institutional adoption and bolstering Ethereum's centrality in the DeFi landscape.

Experts predict that the growing usage of stablecoins will enhance Ethereum's competitive market standing. Analysts note that Layer-1's resurgence could reshape liquidity allocation, reclaiming its dominance from Layer-2 scalability solutions. Solving cross-layer liquidity fragmentation is critical for Ethereum to maintain its competitive edge in the evolving DeFi landscape. Past surges in stablecoin usage, such as those in 2021 and 2022, boosted fees and showed regulatory impact but shifted to Layer-2 solutions as gas costs surged. The current focus returns to Layer-1, emphasizing a shift in market sentiment.

Illia Otychenko of CEX.io highlights the significance of solving liquidity fragmentation across layers. This approach is vital for Ethereum, suggesting a stronger position in the rapidly evolving DeFi landscape. The stability and predictability of stablecoins make them an attractive option for users who are wary of the volatility associated with other cryptocurrencies. This stability is particularly appealing in regions where traditional financial systems are unstable or unreliable. The integration of stablecoins into various financial applications and platforms has made them more accessible and user-friendly, including their use in DeFi protocols where they serve as a medium of exchange and a unit of account.

The regulatory environment for stablecoins has been evolving, with some jurisdictions implementing frameworks that provide clarity and legal certainty for their use. This regulatory clarity has encouraged more users and institutions to adopt stablecoins, as they can operate with greater confidence and security. However, widespread adoption of stablecoin-based payment systems still faces considerable barriers, including trust deficits, infrastructure gaps, and regulatory challenges. These obstacles must be addressed to fully realize the potential of stablecoins as a mainstream financial tool.

The rise in stablecoin adoption also reflects a broader trend towards digital currencies and blockchain technology. As more people become familiar with these technologies, they are increasingly likely to incorporate them into their financial lives. This trend is supported by the growing number of financial institutions and companies that are exploring the use of stablecoins and other digital assets. The integration of stablecoins into existing financial systems could lead to more efficient and inclusive financial services, benefiting both users and providers.