Ethereum Layer-2s Reach New Heights with $13.5B in Stablecoins

Ethereum layer-2 platforms have achieved a major milestone. Over $13.5 billion in stablecoins are now locked on these networks. Tie Terminal’s data reveals that Arbitrum One and Base are leading this surge. Together, they hold $10.29 billion in stablecoin value.

Arbitrum, Base, and the Stablecoin Boom

Arbitrum leads with $6.73 billion in locked stablecoins, while Base follows with $3.56 billion. These networks improve transaction efficiency and strengthen Ethereum’s ecosystem. 

Tether (USDT) remains the dominant stablecoin, exceeding $140 billion in market capitalization by mid-December. Circle’s USD Coin peaked at $42 billion, showing steady adoption across crypto markets.

The stablecoin market has grown rapidly since early November, rising from $123 billion to $205 billion. This growth reflects increased confidence in stablecoins as tools for global transactions. 

Ethereum Upgrades Fuel Layer-2 Adoption

Ethereum’s Dencun upgrade significantly reduced transaction costs, boosting activity on layer-2 platforms. Base now processes over 8 million daily transactions, compared to just 400,000 in March. 

Taiko has also seen strong growth, surpassing 3 million transactions per day. However, Linea experienced a decline, falling to 200,000 daily transactions from previous highs of 800,000.

Layer-2 rollups have temporarily made ETH supply deflationary. Blobs, which store data offchain, played a key role by lowering costs and burning over 1,200 ETH. These innovations emphasize Ethereum’s commitment to scalability and efficiency.

Arbitrum continues to lead in stablecoin market share, with Base and Optimism following closely. These networks showcase Ethereum's adaptability in a competitive and evolving crypto space.