Stablecoins Are Turning Into a Major Revenue Engine for Ethereum

#stablecoin issuers generated nearly $5B in revenue on Ethereum last year, per Token Terminal.

Most of this came from yields on collateral assets like short-term Treasuries, not fees, highlighting how capital efficiency, not speculation, is driving growth.

• Quarterly issuer revenue rose sharply from ~$500M in Q1 to over $1.4B in Q4
• #Ethereum stablecoin supply grew by ~$50B YoY to ~$180B, reinforcing its role as the primary settlement layer

At the market level, stablecoins are now operating at a massive scale. The total stablecoin market peaked above $310B, led by $USDT ($187B) and $USDC ($72B). Usage is accelerating alongside supply, with on-chain transaction volume up 72% to ~$33T, signalling adoption beyond just trading pairs.

Layer-2s are playing a critical role in this expansion.

• Base reached a new ATH of ~$5.2B in stablecoin supply, showing how payments and DeFi activity are migrating to cheaper rails while staying anchored to Ethereum

On the credit side, Ethereum remains unmatched. It leads on-chain lending with ~$28B in active loans, roughly 10× that of any other network, making stablecoins the backbone of on-chain credit markets.

• Yield-bearing stablecoins like $sUSDS are growing rapidly as users seek “cash-like” assets that earn
• Key challenges remain around regulation and privacy, especially as stablecoins move closer to everyday payment use

Key Takeaway: Stablecoins are no longer just liquidity tools. They’re becoming one of Ethereum’s strongest and most consistent revenue drivers.