Stablecoin On-Chain Volume Hits Record $1.5 Trillion as DeFi Activity Surges

In July 2025, the stablecoin market exhibited robust expansion, with on-chain settlement volume escalating to an unprecedented $1.5 trillion. This significant milestone underscores a notable resurgence in decentralized finance (DeFi) activity and highlights stablecoins’ growing utility as foundational assets within the evolving digital economy. The sustained increase in transaction volume across various blockchain protocols signals broader market confidence and enhanced engagement.

• July 2025 on-chain stablecoin settlement volume hit a record $1.5 trillion.
• DeFi Total Value Locked (TVL) reached a three-year high of $179 billion, largely driving the volume surge.
• Circle’s USDC consistently dominated on-chain transactions, accounting for 40% to 48% of stablecoin DeFi volume.
• Tether’s USDT maintained its position as the largest stablecoin by supply, with a market capitalization of approximately $164.70 billion.
• The overall stablecoin market capitalization reached $268.20 billion, effectively doubling in the past year.
• Recent regulatory guidance from the US SEC and the anticipated GENIUS Act are supporting continued market expansion.

On-Chain Volume Reaches Record Highs

The impressive July figures build upon a strong performance throughout 2025. Data from analytics firm Sentora reveals that July’s stablecoin volume of $1.5 trillion eclipsed prior peaks, including $1.39 trillion in May 2025 and $1.44 trillion in April. This trajectory reflects a consistent upward trend since the start of the year, with monthly volumes reliably surpassing $1.2 trillion—a significant leap from the $950 billion recorded in January. Preliminary data for August indicates this robust momentum persists, with nearly $200 billion in on-chain volume registered within the first five days, positioning the month to again exceed $1.2 trillion.

This surge in stablecoin on-chain activity is largely a direct consequence of heightened engagement within decentralized finance. Defillama recently reported a more than 3% increase in the Total Value Locked (TVL) across DeFi protocols within a 24-hour period, reaching $137.33 billion. Sentora further substantiates this trend, observing that DeFi TVL ascended to a three-year high of $179 billion this week. This growth is predominantly fueled by substantial capital inflows into liquid staking protocols and the appreciation of Ethereum (ETH), which approached the $4,000 threshold. Such developments vividly illustrate the intricate connection between escalating stablecoin usage and the overall vitality of the decentralized finance ecosystem.

Dominance and Supply Dynamics

In this rapidly evolving digital asset landscape, Circle’s USDC has consistently led on-chain stablecoin transactions throughout 2025. It typically accounts for a substantial 40% to 48% of all DeFi transactions involving stablecoins. Conversely, Tether’s USDT generally makes up 20% to 27% of the total on-chain volume, while MakerDAO’s DAI fluctuates between 17% and 33% depending on monthly activity. Combined, these three stablecoins command over 90% of the aggregate monthly on-chain stablecoin volume. Notably, Ethena’s USDe is emerging as a significant participant, capturing approximately 3% of this volume.

While USDC holds sway in on-chain transaction volume, Tether’s USDT firmly retains its position as the largest stablecoin by supply. It commands a formidable market capitalization of approximately $164.70 billion, representing a market dominance of 61.41%. USDT‘s supply increased by 3.28% over the last month alone. In comparison, USDC‘s supply stands at a considerable yet trailing $63.85 billion. Other prominent stablecoins by supply include Ethena USDe at $9.517 billion, Sky Dollar USDS at $4.87 billion, and DAI at $4.33 billion. Ethena USDe, in particular, has showcased remarkable expansion, experiencing a 79.47% supply increase in the past month. This growth rate was only exceeded by Falcon USD (USDf), which witnessed an exceptional 102% surge, climbing from $552 million to $1.09 billion.

Market Growth and Regulatory Milestones

The aggregate stablecoin market capitalization has now reached an impressive $268.20 billion, with an additional $13.2 billion flowing in during the last month alone. This surge signifies that the market has effectively doubled in size over the past year, showcasing a robust growth trajectory. This expansion is significantly bolstered by ongoing initiatives aimed at establishing clear regulatory frameworks.

A key development in this regard is the recent guidance from the US Securities and Exchange Commission (SEC), which permits certain fully backed, redeemable USD stablecoins to be classified as cash equivalents. This provides crucial interim clarity as the market awaits more comprehensive regulatory structures. Moreover, the anticipated passage of the GENIUS Act stablecoin law in the U.S. is poised to further entrench the role of fiat-pegged digital tokens within the traditional financial system, setting the stage for continued innovation, expansion, and deeper integration.