Ethereum recorded a major surge in stablecoin activity within the last 24 hours, as over $1.1 billion moved on-chain. The inflows, recorded on November 6, show Ethereum’s growing role in digital finance as traders, institutions, and DeFi users increasingly turn to the network for liquidity and stability.
Stablecoin Surge Demonstrates Ethereum’s Liquidity Grip
The surge indicates that more people are choosing Ethereum for quick and secure transactions. In October, total stablecoin transactions hit $2.82 trillion, a significant rise from $1.94 trillion in September.
This 45% jump set a new record and strengthened Ethereum’s position as the leader in decentralized trading and transfers. The primary drivers behind this growth remain USDT and USDC. Together, these two stablecoins account for over 90% of the stablecoin supply on the Ethereum network.
Analysts attribute the sharp rise to a defensive market stance, as investors move funds into stablecoins following recent volatility. This volatility has been linked to geopolitical events, prompting traders to seek safety before re-entering riskier assets once market conditions stabilize.
Dencun Upgrade Boosts DeFi and Stablecoin Demand
The Ethereum Dencun upgrade has been instrumental in sustaining network growth by significantly cutting transaction costs, making the network faster and more scalable. This has led to improved performance for popular DeFi platforms such as Aave, Uniswap, and Curve.
Consequently, more users and funds have flowed into Ethereum’s decentralized finance space. Currently, Ethereum holds approximately 58% of all stablecoin value globally, maintaining a substantial lead over competing networks like Solana and Tron.
Despite the growth of other networks, Ethereum’s deep liquidity and robust developer community continue to provide it with a competitive edge. This technical advantage has cemented the network as a consistent choice for both institutional and retail users.
Traditional Finance Deepens Stablecoin Integration
The rapid expansion of stablecoins has also attracted increased involvement from traditional finance institutions in blockchain infrastructure. Regulatory developments, including the GENIUS Act in the U.S., Europe’s MiCA rules, and Hong Kong’s Stablecoin Ordinance, have clarified the crypto landscape, fostering greater confidence for companies to operate within the space.
Major financial players are actively engaging with stablecoins. JPMorgan has facilitated over $1.5 trillion in stablecoin transactions. Additionally, Stripe made a significant move by acquiring Bridge for $1.1 billion, marking the largest crypto deal ever by a payments company.
Leading payment networks like Visa and Mastercard are integrating stablecoins into their payment systems, opting for partnership rather than direct competition. Cloudflare has also entered the space with its NET Dollar project, which focuses on AI-driven micropayments.
The dominant stablecoins, USDT and USDC, remain central to this expanding ecosystem. Tether, the issuer of USDT, now holds $127 billion in U.S. Treasury bonds, positioning it as one of the largest buyers of U.S. government debt.
Circle's USDC has experienced substantial growth, increasing by 78% year-over-year, bolstered by a $1.1 billion IPO and new institutional banking partnerships. Collectively, these two issuers now control over $150 billion in U.S. Treasury securities, making them the seventeenth-largest holder of American debt.
Their increasing integration with banks and payment processors has transformed stablecoins into essential instruments for cross-border settlements and digital commerce. A significant portion of this activity continues to occur on Ethereum, underscoring the blockchain's critical role in bridging traditional and decentralized finance.
Ethereum’s native token, ETH, has not mirrored this positive trend, with its price falling to $3,359 during the same period. Concurrently, the Crypto Fear & Greed Index dropped to 21, indicating extreme investor caution. Nevertheless, the steady inflows into stablecoins suggest that liquidity remains within the ecosystem, poised to re-enter riskier assets once broader market sentiment improves.
Ethereum’s expanding stablecoin base, growing institutional adoption, and recent technical upgrades collectively signify a key transition in global finance. The substantial $1.1 billion in stablecoin inflows recorded in a single day highlights the network's resilience and its unmatched dominance across both decentralized and institutional markets.