-
Ethereum-based stablecoins have achieved a new milestone with over 750,000 unique weekly users as of June 2025, driven predominantly by USDT and USDC adoption.
-
This surge underscores a renewed market preference for Ethereum Layer-1 solutions, fueled by lower transaction fees and enhanced network efficiency.
-
According to COINOTAG, industry experts emphasize that resolving liquidity fragmentation across Ethereum layers is crucial for sustaining its DeFi dominance.
Ethereum stablecoins hit 750K weekly users, led by USDT and USDC, signaling Layer-1 resurgence and increased DeFi activity on the Ethereum network.
USDT and USDC Drive Record Growth in Ethereum Stablecoin Usage
The Ethereum stablecoin ecosystem is witnessing unprecedented growth, with user activity surpassing 750,000 unique weekly participants. 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 PayPal’s 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.
Ethereum’s Transaction Fee Revenue Climbs Amid Stablecoin Surge
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.
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.
Layer-1 Ethereum Reclaims Market Share from Layer-2 Solutions
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.
Illia Otychenko, a blockchain analyst at CEX.io, underscores the importance of integrating liquidity across Ethereum’s layers to prevent fragmentation. This integration is essential for sustaining Ethereum’s dominance and ensuring seamless user experiences in DeFi applications.
Conclusion
The record-breaking adoption of Ethereum-based stablecoins, led by USDT and USDC, marks a significant milestone for the network’s Layer-1 ecosystem. Enhanced transaction efficiency and fee optimization have rekindled market confidence, positioning Ethereum as a central hub for stablecoin activity and DeFi innovation. Moving forward, addressing liquidity fragmentation across layers will be critical to maintaining this momentum and supporting sustainable growth in the decentralized finance sector.
