Ethereum has maintained its leading position in the stablecoin market, with a stablecoin supply of $174.95 billion. This figure represents a 0.6% week-over-week increase and a significant 63% growth year-over-year. As Ethereum holds its top spot, several Layer 2 networks are also experiencing notable expansion in their stablecoin liquidity.
Stablecoin Liquidity Battles Intensify Among Layer 2 Networks
Data from the on-chain data explorer Growthepie indicates that Arbitrum One follows Ethereum with a stablecoin supply of $7.84 billion. The Layer 2 network’s stablecoin supply has witnessed a 1.2% decline week-over-week but has grown by 45% year-over-year. Base Chain claims the third position with a stablecoin supply of $4.53 billion, showing a 1% increase week-over-week and a 31% growth rate year-over-year. Mantle secures the fourth spot with $668.42 million, demonstrating a steady growth rate of 147% year-over-year, despite a slight 2.1% drop week-over-week.
However, not all Layer 2 networks have experienced year-over-year growth. OP Mainnet ranks fifth with a stablecoin supply of $548.79 million. The network’s stablecoin supply has declined by 7.6% week-over-week, contributing to its year-over-year decline of 55.2%. Celo’s supply has also dipped by 27.9% year-over-year to $184.22 million, according to blockchain explorer data.
Ethereum also leads other networks in overall stablecoin supply. According to data from Token Terminal, a blockchain metrics provider, Ethereum has a stablecoin supply of $184.8 billion.
Tron claims the second position with a stablecoin supply of $78.5 billion, while Solana trails in third place with a supply of $14.4 billion. The data also reveals that the total stablecoin supply reached an all-time high of $283.2 billion.
Previous reports indicated that the sudden surge in stablecoin supply is attributed to new regulations from the Trump administration. President Trump signed the GENIUS Act earlier, providing regulatory clarity for stablecoins. CEO of MNEE Ron Tarter referred to the reform as a "green light" for corporate companies in the U.S. to infiltrate the industry.
Data from crypto data aggregator CoinMarketCap shows that the market capitalization of Tether’s stablecoin USDT has reached an all-time high of $184.79 billion and has been on a steady increase since November 22. USDT is the world’s largest stablecoin by market cap.
Stablecoin Growth Likely Credited to New U.S. Regulations
A publication issued by The White House in mid-July this year highlighted that the Act will ensure stablecoins play a crucial role in ensuring the continued global dominance of the U.S. dollar as the world’s reserve currency. The act requires stablecoin issuers to back their assets with Treasuries and U.S. dollars. The publication also explained that the act will increase crypto-related activities in the country by providing regulatory clarity for institutions.
This move aligns with Trump’s long-term vision to make the U.S. the global crypto capital, a promise he made to Americans during his presidential campaign. Trump signed an executive order in his first week in office to promote the U.S.’s leadership in the crypto ecosystem.
In Europe, new reforms for stablecoin development are also taking shape. Ten major banking giants have united to form a regulated, euro-pegged stablecoin.
The alliance will operate under the EU’s Markets in Crypto-Assets (MiCA) regulatory framework and plans to launch the stablecoin in the second half of 2026. The banks involved in Qivalis include ING, CaixaBank, DekaBank, BNP Paribas, Danske Bank, KBC, UniCredit, SEB, Banca Sella, and Raiffeisen Bank International.
The bank-issued stablecoin will operate on decentralized blockchain networks, unlike conventional payment systems. The stablecoin will be available for individual and corporate cross-border settlements after licensing agreements and regulatory approvals are completed.