Ethereum Ecosystem Dominates as Stablecoins’ DeFi Revenue Share Crosses 30%

Stablecoin revenue is surging across the decentralized finance (DeFi) sector, with Ethereum and Layer 2s (L2s) leading the charge.

According to a new report by investment firm KeyRock, stablecoins’ share of DeFi revenue has climbed to 30.8% – a year-to-date (YTD) high – up from a low of 4.7% in June 2024. Ethereum accounts for 25% of that total, followed by L2s at 23%, while Solana trails at 13%.

The gap between lending protocols’ and decentralized exchanges’ (DEXs) earnings from stablecoins has also narrowed to 15% versus 11%, down from 65% and 20% in 2023. The report also notes that stablecoins facilitated over $35 trillion in on-chain settlements in 2024 – more than double the amount that Visa processes annually.

According to DeFiLlama, the total stablecoin market capitalization currently stands at $250 billion, with Tether’s USDT holding the top spot at nearly $153 billion. In second place with $61 billion is USDC, issued by Circle, which went public today on the New York Stock Exchange (NYSE).

The data points to a broader shift in DeFi activity, with Ethereum at the center, as stablecoins are increasingly being used across a wider range of applications. The stablecoin market has experienced a significant surge in supply in recent years as institutional interest has grown.

“Stablecoins are no longer simply a means of value transfer; they are now the backbone of the way DeFi works,” the KeyRock report reads. “As dollar-pegged digital tokens offering price stability, stablecoins are the de facto medium of exchange, collateral, and settlement for nearly every prominent DeFi application.”

Separate findings from DappRadar show that the total value locked (TVL) in DeFi rose 25% to $200 billion in May, driven by Ethereum’s 40% price gain and $244 billion in trading volume on Hyperliquid.

Ethereum is currently changing hands at $2,566, up 4.5% over the past month, according to The Defiant’s price page.