Ethereum Stablecoin Users Surge 750,000 Weekly Amid Layer-1 Adoption

On June 25, 2025, Ethereum stablecoin usage reached a significant milestone, with the number of unique weekly users hitting 750,000, marking a new all-time high. This surge in usage is attributed to the growing adoption of Layer-1 technologies, which have facilitated smoother and more efficient transactions on the Ethereum network. The increase in stablecoin usage reflects a broader trend of institutional and retail investors embracing digital assets as a viable alternative to traditional financial instruments.

The rise in Ethereum stablecoin usage can be seen as a testament to the network's evolving infrastructure and its ability to support a wide range of financial applications. Stablecoins, which are designed to maintain a stable value, have become increasingly popular due to their utility in facilitating transactions and hedging against market volatility. The adoption of Layer-1 technologies has further enhanced the network's scalability and security, making it an attractive option for users seeking reliable and efficient financial services.

This expansion is largely attributed to the widespread adoption of USDT (Tether) and USDC (Circle), which remain the dominant stablecoins within decentralized finance (DeFi) platforms. Their robust infrastructure and liquidity provision have been instrumental in attracting both retail and institutional users. Moreover, emerging stablecoins such as PYUSD are beginning to influence the market dynamics, contributing to a more diversified and competitive stablecoin landscape on Ethereum. This trend highlights the growing confidence in Ethereum’s Layer-1 network as a reliable and efficient platform for stablecoin transactions.

Historically, Ethereum’s Layer-2 scaling solutions gained traction during periods of high gas fees, notably in 2021 and 2022, as users sought cost-efficient alternatives. However, recent developments indicate a shift back to Layer-1, driven by reduced transaction costs and enhanced network throughput. This shift underscores a renewed market preference for Ethereum Layer-1 solutions, fueled by lower transaction fees and enhanced network efficiency.

Financial analysts suggest that the resurgence of Layer-1 activity could reshape liquidity flows within the Ethereum ecosystem, potentially reversing the migration towards Layer-2 solutions observed in previous years. Addressing cross-layer liquidity fragmentation remains a strategic priority to maintain Ethereum’s competitive advantage in the evolving decentralized finance environment. Industry experts emphasize that resolving liquidity fragmentation across Ethereum layers is crucial for sustaining its DeFi dominance.

The increased stablecoin activity has directly impacted Ethereum’s on-chain transaction volume, leading to a significant rise in fee revenue. This uptick reflects a positive market sentiment, reinforcing Ethereum’s position as the backbone of DeFi operations. Both retail users and institutional investors are driving this growth, attracted by the network’s improved scalability and cost-effectiveness.

The launch of Kaia's Gas Abstraction feature in July 2025 is expected to further enhance the user experience by enabling stablecoin payments for transaction fees. This feature is part of a broader effort to transform Web3 and make digital asset transactions more accessible and user-friendly. By integrating stablecoin payments into the transaction process, Kaia aims to reduce the complexity and cost associated with traditional transaction methods, thereby attracting more users to the Ethereum network.

The growing adoption of Layer-1 technologies and the increasing use of stablecoins on the Ethereum network highlight the network's potential to become a leading platform for digital asset transactions. As the network continues to evolve and attract more users, it is poised to play a crucial role in the future of finance, offering secure, efficient, and innovative financial services to a global audience.