TLDR
- Stablecoin volume reached $2.82 trillion in October 2025.
- USDC and USDT contributed $1.6 trillion and $900 billion, respectively.
- Stablecoins account for 65% to 70% of Ethereum’s daily revenue.
Ethereum’s stablecoin volume has reached a record high of $2.82 trillion in October 2025. This surge comes despite a general decline in the cryptocurrency market, with Ethereum (ETH) and Bitcoin (BTC) both experiencing double-digit losses during the same period. The increased stablecoin activity suggests a strong demand for capital preservation and yield strategies among traders awaiting better market conditions.
USDC and USDT are the primary contributors to this surge, with volumes of $1.6 trillion and $900 billion, respectively. According to on-chain data, Ethereum continues to serve as the principal settlement layer for most stablecoins and decentralized finance (DeFi) activities.
Positive Impact on Stablecoin Issuers
Key stablecoin issuers involved include Circle, Tether, and MakerDAO. No direct statements from Ethereum Foundation leaders have been identified related to this recent surge. However, Vincent Liu, CIO at Kronos Research, noted that investors are rotating into stablecoins to preserve capital and earn yield, while holding funds in anticipation of new market opportunities.
Stablecoin issuers are now accounting for 65% to 70% of daily protocol revenue on Ethereum. This revenue mainly comes from interest on US Treasury holdings backing the stablecoins. The increased focus on stablecoins highlights the shift in trader preferences amid a challenging market environment.
Ethereum and Bitcoin Price Trends
Ethereum’s price has declined by approximately 12-16% in the last 30 days, currently trading between $3,800 to $3,900 as of November 3, 2025. Bitcoin also experienced a drop of about 11.5% over the same period, maintaining a high correlation with equities.
Stablecoins, such as USDC, USDT, and DAI, saw significant volume shifts during this time, with USDC and USDT volumes increasing substantially. In contrast, DAI volume declined. This aligns with historical trends where stablecoin volumes rise during risk-off periods in the crypto market.
Stablecoins Dominating Ethereum Activity
The surge in stablecoin volumes means they now dominate on-chain activity, holding the largest share of protocol revenue. While there is no major change reported in the total value locked (TVL) in Ethereum, there is a visible rotation of capital into stablecoins from volatile assets. Ethereum staking and major DeFi protocol flows remain steady but show capital outflows from riskier assets towards stablecoins.
This pattern mirrors past bear market phases, like in 2022, where stablecoin volumes surged amid declining major asset prices. Historically, such surges in stablecoin dominance can coincide with later market recoveries. However, the timing of such recoveries remains uncertain and depends on broader macroeconomic and regulatory factors.
Current Market Sentiment and Responses
No new statements have been issued by major crypto leaders such as Vitalik Buterin or Joseph Lubin regarding the recent developments. Sentiment on public forums like Reddit and Telegram appears cautious, with discussions centering on capital protection and waiting for macroeconomic triggers.
Regarding regulatory updates, no new statements have been released by authorities like the SEC or CFTC concerning the surge in stablecoin volumes. However, exchanges such as Coinbase report strong revenue linked to USDC and stablecoin inflows without reporting new compliance actions. For Ethereum’s price updates, please refer to Ethereum Price – Coinbase.
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