The post Ethereum Becomes DeFi’s Dollar Hub With $166B Stablecoins appeared on BitcoinEthereumNews.com. Ethereum 15 September 2025 | 13:20 Ethereum’s dominance in decentralized finance is being reinforced by a surge in stablecoin activity, with analysts pointing to fresh liquidity as a sign that the network has become the de facto settlement layer for crypto’s dollar economy. Vincent Liu, CIO of Kronos Research, described the trend as a “defining moment” where Ethereum is no longer seen only as a platform for speculative assets but as the backbone for on-chain dollarization. He argued that the sheer scale of liquidity now circulating on Ethereum makes the ecosystem resilient enough to withstand market turbulence. Nick Ruck, research director at LVRG, agreed that the milestone marks deeper institutional participation. “This reflects a massive inflow of institutional liquidity and greater confidence in Ethereum’s infrastructure,” he said, adding that the growth could feed into higher DeFi activity — and eventually more demand for ETH itself. The Numbers Behind the Surge Fresh data illustrates the scale of this transformation. The combined stablecoin supply on Ethereum has reached $166 billion, a new all-time high and a sharp jump from $149.5 billion just a month ago. Tether remains the heavyweight with $87.8 billion circulating on Ethereum, while USDC accounts for another $48 billion. Together, the two stablecoins represent the bulk of Ethereum’s tokenized dollars. Why It Matters for Ethereum Stablecoins serve as the lifeblood of lending, trading, and liquidity protocols, enabling participants to transact without exposure to the volatility of native cryptocurrencies. Their growth signals that Ethereum has become the settlement hub of choice for institutions and DeFi platforms alike. As this pool of tokenized dollars deepens, demand for blockspace, transaction settlement, and staking rewards is expected to rise in parallel. For many, this surge in stablecoin activity isn’t just about liquidity — it’s a preview of Ethereum’s next growth cycle. The information… The post Ethereum Becomes DeFi’s Dollar Hub With $166B Stablecoins appeared on BitcoinEthereumNews.com. Ethereum 15 September 2025 | 13:20 Ethereum’s dominance in decentralized finance is being reinforced by a surge in stablecoin activity, with analysts pointing to fresh liquidity as a sign that the network has become the de facto settlement layer for crypto’s dollar economy. Vincent Liu, CIO of Kronos Research, described the trend as a “defining moment” where Ethereum is no longer seen only as a platform for speculative assets but as the backbone for on-chain dollarization. He argued that the sheer scale of liquidity now circulating on Ethereum makes the ecosystem resilient enough to withstand market turbulence. Nick Ruck, research director at LVRG, agreed that the milestone marks deeper institutional participation. “This reflects a massive inflow of institutional liquidity and greater confidence in Ethereum’s infrastructure,” he said, adding that the growth could feed into higher DeFi activity — and eventually more demand for ETH itself. The Numbers Behind the Surge Fresh data illustrates the scale of this transformation. The combined stablecoin supply on Ethereum has reached $166 billion, a new all-time high and a sharp jump from $149.5 billion just a month ago. Tether remains the heavyweight with $87.8 billion circulating on Ethereum, while USDC accounts for another $48 billion. Together, the two stablecoins represent the bulk of Ethereum’s tokenized dollars. Why It Matters for Ethereum Stablecoins serve as the lifeblood of lending, trading, and liquidity protocols, enabling participants to transact without exposure to the volatility of native cryptocurrencies. Their growth signals that Ethereum has become the settlement hub of choice for institutions and DeFi platforms alike. As this pool of tokenized dollars deepens, demand for blockspace, transaction settlement, and staking rewards is expected to rise in parallel. For many, this surge in stablecoin activity isn’t just about liquidity — it’s a preview of Ethereum’s next growth cycle. The information…

Ethereum Becomes DeFi’s Dollar Hub With $166B Stablecoins

Ethereum

Ethereum’s dominance in decentralized finance is being reinforced by a surge in stablecoin activity, with analysts pointing to fresh liquidity as a sign that the network has become the de facto settlement layer for crypto’s dollar economy.

Vincent Liu, CIO of Kronos Research, described the trend as a “defining moment” where Ethereum is no longer seen only as a platform for speculative assets but as the backbone for on-chain dollarization. He argued that the sheer scale of liquidity now circulating on Ethereum makes the ecosystem resilient enough to withstand market turbulence.

Nick Ruck, research director at LVRG, agreed that the milestone marks deeper institutional participation. “This reflects a massive inflow of institutional liquidity and greater confidence in Ethereum’s infrastructure,” he said, adding that the growth could feed into higher DeFi activity — and eventually more demand for ETH itself.

The Numbers Behind the Surge

Fresh data illustrates the scale of this transformation. The combined stablecoin supply on Ethereum has reached $166 billion, a new all-time high and a sharp jump from $149.5 billion just a month ago. Tether remains the heavyweight with $87.8 billion circulating on Ethereum, while USDC accounts for another $48 billion. Together, the two stablecoins represent the bulk of Ethereum’s tokenized dollars.

Why It Matters for Ethereum

Stablecoins serve as the lifeblood of lending, trading, and liquidity protocols, enabling participants to transact without exposure to the volatility of native cryptocurrencies. Their growth signals that Ethereum has become the settlement hub of choice for institutions and DeFi platforms alike.

As this pool of tokenized dollars deepens, demand for blockspace, transaction settlement, and staking rewards is expected to rise in parallel. For many, this surge in stablecoin activity isn’t just about liquidity — it’s a preview of Ethereum’s next growth cycle.


The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

Author

Alexander Zdravkov is a person who always looks for the logic behind things. He is fluent in German and has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.



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Source: https://coindoo.com/ethereum-becomes-defis-dollar-hub-with-166b-stablecoins/

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