Ethereum has achieved a significant milestone, with its stablecoin supply surging to a record high of $165 billion. Recent data indicates that the blockchain platform added approximately $5 billion in new stablecoins just over the past week, translating to around $1 billion added per day. Despite this growth, network revenues have faced a notable decline.
According to Token Terminal, Ethereum’s on-chain revenue plummeted by 44% month-over-month, dropping from $25.6 million in July to $14.1 million in August. This decline coincides with a significant drop in network fees, which fell by 20% to $39.7 million. Much of this downturn can be attributed to the Dencun upgrade, which decreased layer-2 transaction costs, enhancing scalability but reducing revenue from layer-1 fees.
Critics have voiced concerns that this low fee revenue could jeopardize Ethereum’s viability as a platform. However, there is a growing sentiment among supporters who argue that Ethereum is transitioning into an essential decentralized finance (DeFi) infrastructure. Institutional interest in Ethereum remains robust despite these revenue concerns. For instance, the company Etherealize managed to raise $40 million in September to further Ethereum’s adoption among public corporations, focusing on creating an infrastructure for private trading and settlement of tokenized assets.
Co-founder Joseph Lubin expressed optimism about Ethereum’s future, predicting that it could see a 100-fold increase as Wall Street increasingly turns to decentralized finance. Lubin envisions Ethereum replacing traditional institutional systems, becoming the backbone for financial services and smart contract execution. Fundstrat’s Tom Lee also shares a bullish outlook, setting a near-term target of $5,500 for ETH, with an ambitious end-of-year projection of $12,000. He highlighted a shift in institutional sentiment following the passage of the GENIUS Act, which recognized Ethereum as a foundational blockchain underpinning a thriving stablecoin ecosystem.
Globally, the stablecoin market is experiencing explosive growth; the transaction volume reached a record $2.5 trillion, as reported by data from the Bridge platform. Chainalysis reports that USDT alone processed over $1 trillion monthly from June 2024 to June 2025, with a peak reaching $1.14 trillion in January. In contrast, USDC has shown variable monthly activity, ranging from $1.24 trillion to $3.29 trillion, with indications it’s increasingly linking to U.S. institutional frameworks, while USDT remains dominant in emerging markets.
In response to this robust demand, Tether is looking to deepen its investment in gold, holding $8.7 billion in gold reserves and exploring additional investments worth over $100 million in various sectors related to gold.
Within the competitive landscape of exchanges, Binance continues to lead in stablecoin reserves with $44.2 billion, thus capturing 67% of all USDT and USDC holdings across exchanges. Other exchanges like OKX, Bybit, and Coinbase have seen flat growth as user activity becomes increasingly concentrated on larger platforms. The latest statistics show that Binance gained an additional $2.2 billion in reserves over the past month, while OKX added $800 million.
Further advancements in the stablecoin ecosystem are on the horizon, as Stripe recently launched its Tempo blockchain. It aims to facilitate over 100,000 transactions per second, providing a payments-focused Layer 1 solution that allows for fiat-denominated fees and supports any stablecoin for gas payments. The project has garnered support from a range of partners, including major names such as Visa, Deutsche Bank, and Shopify.
As the overall stablecoin market continues to expand, projections suggest it could exceed $2 trillion by 2028, highlighting a rapidly evolving landscape in digital finance.
