Stablecoins Soar: Is DeFi Back from the Dead? 💰🚀

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Key Takeaway

In a twist worthy of a melodrama, stablecoin on-chain volume has reached a staggering $1.5 trillion in July, hinting at a DeFi renaissance, all thanks to Ethereum’s gallant rise and a sprinkle of regulatory clarity. While USDC takes the lead in DeFi usage, USDT remains the reigning monarch of supply, with lending platforms buzzing like bees in spring.

Ah, decentralized finance (DeFi), that fickle friend, seems to be regaining its footing, with stablecoin activity hitting a new high. Who would have thought?

In the balmy month of July 2025, stablecoins recorded over $1.5 trillion in on-chain volume, the highest monthly figure ever, according to the oracle of blockchain analytics, Sentora (formerly known as IntoTheBlock). One can only imagine the confetti raining down in their offices.

Charts reveal that this surge continues a robust uptrend that began earlier this year, marking a sharp rebound from January’s paltry $950 billion. It seems stablecoins are the phoenix of the DeFi world, rising from the ashes of despair.

In just the first five days of August, on-chain stablecoin transactions have generated nearly $200 billion in volume, putting the market on track to exceed $1.2 trillion for the month. At this rate, we might need a bigger calculator!

Much of this renewed activity is being driven by Ethereum’s strong performance and rising price, which has reignited interest across the DeFi ecosystem. It’s like watching a soap opera where the hero returns from the dead.

Additionally, DeFi’s Total Value Locked (TVL) has hit a three-year high of $179 billion, fueled by inflows into liquid staking protocols and ETH’s climb toward the $4,000 mark. Who knew finance could be so thrilling?

Taken together, these trends highlight the growing adoption of stablecoins for on-chain transactions, especially in light of the recent passage of the U.S. GENIUS Act, which officially regulates fiat-pegged digital tokens. Genius indeed!

USDC vs USDT

In this surge, Circle’s USDC has emerged as the dominant force in DeFi stablecoin transactions throughout 2025, consistently accounting for 40-48% of all on-chain stablecoin volume. Bravo, USDC!

On the other hand, Tether’s USDT and MakerDAO’s DAI have contributed less, accounting for around 20-27% and 17-33% of the volume, respectively, depending on the month. It’s like a race where some participants are still tying their shoelaces.

Together, these three stablecoins make up over 90% of monthly on-chain activity, with only Ethena’s [ENA] USDe coming close at a modest 3%. A round of applause for the underdog!

While USDC leads in volume, USDT is quietly gaining ground again, especially on DeFi protocols. It’s the tortoise in this race, folks.

Notably, the amount of USDT supplied on Aave [AAVE] has surged by 123% this year, reaching nearly $7.5 billion, signaling a resurgence in its on-chain demand. Who knew USDT had such a flair for the dramatic?

Highlighting which, Sentora added,

“The amount of USDT supplied on @aave has increased by 123% since the start of this year and is approaching $7.5 billion.”

Is USDT losing ground?

Despite USDC’s stronghold in on-chain activity, USDT remains the largest stablecoin by supply, commanding a 61.41% market dominance with a circulating value of $164.70 billion, up 3.28% over the past month. It’s like the heavyweight champion refusing to leave the ring.

Meanwhile, concerns around USDC’s security also recently surfaced after a user lost over $908,000 to a wallet-draining scam tied to an old contract approval. Ouch! Talk about a bad day at the office.

Still, Circle continues to push ahead with its growth plans, recently announcing an ambitious fundraising move to secure up to $624 million through a public offering, targeting a fully diluted valuation of $6.7 billion. Because why not aim for the stars?

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2025-08-07 10:26