Ethereum News Today: Stablecoins Surge as a New Safe Haven Amid Economic Turmoil

Stablecoin demand is surging amid heightened economic uncertainty in the United States, with the total market size surpassing $280 billion and forecasts suggesting it could expand to as much as $2 trillion by 2028 [1]. Recent data from CryptoQuant reveals a sharp increase in stablecoin reserves, reaching $58.5 billion in mid-2025, with depositing addresses frequently exceeding 30,000 and occasionally peaking near 40,000 [2]. This growth underscores the role of stablecoins as a safe haven for capital amid macroeconomic instability, particularly as traders seek alternatives to traditional assets.

Ethereum has emerged as the dominant blockchain for stablecoin settlement, capturing nearly 70% of the market as of September 2025. The platform hosts $150 billion in stablecoins, accounting for more than half of the global stablecoin market [1]. Ethereum's early adoption of smart contract technology allowed it to establish a robust infrastructure for decentralized finance (DeFi), where it currently holds $90 billion in total value locked (TVL)—almost 60% of the TVL across all blockchains [1]. This leadership position reflects Ethereum’s role as a settlement layer for institutional flows and deep liquidity, in contrast to Tron, which continues to dominate retail-style transfers due to its low-cost, high-speed transactions [2].

Tron’s market share has fluctuated between 13% and 67% since 2023, peaking at 74% in May 2023 [2]. Although Ethereum has regained a strong position in the stablecoin landscape, Tron remains a major player, with $81 billion in stablecoins and a 29% share of the total market. Tron’s appeal lies in its ability to facilitate everyday payments at a lower cost than Ethereum, making it a preferred choice for smaller transactions. However, the evolving landscape suggests that Ethereum’s institutional adoption and DeFi integration may continue to solidify its dominance in the long run.

Regulatory developments in the U.S. have also played a critical role in shaping the stablecoin market. The recently signed Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act mandates that stablecoins be fully backed by cash or short-term Treasuries and prohibits stablecoin issuers from offering interest on their tokens. However, the law allows crypto exchanges to provide yield-like rewards on stablecoin holdings, creating a potential regulatory loophole [5]. This has raised concerns among traditional banking groups, who argue that such incentives could lead to a significant shift of deposits from banks to less-regulated crypto platforms [5]. The U.S. Treasury Department has projected that as much as $6.6 trillion could move out of bank deposits into stablecoins, which could impact credit availability and borrowing costs in the broader economy [5].

Looking ahead, the broader financial ecosystem is adapting to the growing influence of stablecoins. J.P. Morgan predicts that the market could expand to $500–750 billion in the coming years, driven by adoption in cross-border payments, remittances, and on-chain liquidity management [3]. However, the sector remains vulnerable to systemic risks, particularly during periods of stress, as demonstrated by the collapse of TerraUSD in 2022 [3]. The challenge for regulators and market participants is to balance innovation with stability, ensuring that the benefits of stablecoins are realized without compromising broader financial integrity.

Source:

[1] title1 (https://www.fool.com/investing/2025/09/06/ethereum-can-it-be-a-long-term-winner/)

[2] title2 (https://ambcrypto.com/stablecoin-demand-soars-amid-u-s-economic-slowdown-details/)

[3] title3 (https://www.jpmorgan.com/insights/global-research/currencies/stablecoins)

[4] title4 (https://www.imf.org/en/Blogs/Articles/2025/09/04/how-stablecoins-and-other-financial-innovations-may-reshape-the-global-economy)

[5] title5 (https://www.wired.com/story/genius-act-loophole-stablecoins-banks/)