While the market is being drawn to ETF funds and Bitcoin is continuously dominating the media, another trend, quietly but more fundamentally, is taking shape: the rise of stablecoins. Backed by fiat, stablecoins are becoming the payment and value circulation infrastructure of the new digital finance. And at the center of this transformation, Ethereum emerges as the primary infrastructure network.
Ethereum – The Absolute Leader
According to JPMorgan's estimates, Ethereum is in an ideal position to directly benefit from the boom of stablecoins. Currently, 51% of the total supply of stablecoins – equivalent to 138 billion USD – is issued on Ethereum, according to data from DefiLlama. Even when these stablecoins are deployed on Layer 2 networks, the underlying infrastructure still largely relies on Ethereum.
Stable and Outstanding Growth
The stablecoin market has experienced 8 consecutive months of growth, with an annual rate far exceeding the rest of the crypto market. JPMorgan points out the main driving factors:
The application speed is rapidly increasing in payments, transactions, and cross-chain asset transfers. A strong focus on Ethereum, both Layer 1 and Layer 2 such as Base and Starknet. The mechanism of burning ETH when using the network helps reduce the circulating supply, creating potential upward price pressure. The growing separation between the market dynamics of stablecoins and the overall crypto market reflects the maturity level of this sector.
This means that stablecoins are no longer just "following" the crypto market but have entered a stage of independent development, in which Ethereum plays a role as the technical and economic hub.
GENIUS Act – A Legal Turning Point in the US
If Ethereum's dominant position in stablecoins has been structural, then the recent legal factors have further accelerated this trend. Notably, the GENIUS Act – a new law in the U.S. that establishes the legal framework for the issuance and circulation of stablecoins – has triggered a strong wave of activity in DeFi, NFTs, and the spot market right in July.
Not only stopping at the crypto space, Wall Street and Web2 corporations are also getting more involved:
Circle (USDC) listed on the stock exchange. Robinhood launches Layer 2 on Ethereum. MetaMask partners with Stripe to integrate direct payments.
These steps show that Ethereum is not just the infrastructure of crypto, but is becoming the platform of programmable global finance.
Opportunities and Challenges
JPMorgan's forecast suggests that the stablecoin market could reach $500 billion by 2028. Standard Chartered is even more optimistic, expecting $750 billion by 2026. This gap reflects uncertainty, but at the same time shows enormous growth potential.
However, this high concentration also poses challenges for Ethereum:
Scalability to meet the increasing transaction volume. System security in the context of growing storage value. Neutrality in the face of participation from financial corporations and private interests.
Conclusion
The alliance between Ethereum and stablecoins is not just a technical story, but a long-term strategy for the future of tokenized finance. If this trend continues, Ethereum could very well become the "operating system" of global digital currency, where stablecoins serve as the standard payment currency of the blockchain era.
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Ethereum Holds More Than Half of the Stablecoin Market
While the market is being drawn to ETF funds and Bitcoin is continuously dominating the media, another trend, quietly but more fundamentally, is taking shape: the rise of stablecoins. Backed by fiat, stablecoins are becoming the payment and value circulation infrastructure of the new digital finance. And at the center of this transformation, Ethereum emerges as the primary infrastructure network. Ethereum – The Absolute Leader According to JPMorgan's estimates, Ethereum is in an ideal position to directly benefit from the boom of stablecoins. Currently, 51% of the total supply of stablecoins – equivalent to 138 billion USD – is issued on Ethereum, according to data from DefiLlama. Even when these stablecoins are deployed on Layer 2 networks, the underlying infrastructure still largely relies on Ethereum. Stable and Outstanding Growth The stablecoin market has experienced 8 consecutive months of growth, with an annual rate far exceeding the rest of the crypto market. JPMorgan points out the main driving factors: The application speed is rapidly increasing in payments, transactions, and cross-chain asset transfers. A strong focus on Ethereum, both Layer 1 and Layer 2 such as Base and Starknet. The mechanism of burning ETH when using the network helps reduce the circulating supply, creating potential upward price pressure. The growing separation between the market dynamics of stablecoins and the overall crypto market reflects the maturity level of this sector. This means that stablecoins are no longer just "following" the crypto market but have entered a stage of independent development, in which Ethereum plays a role as the technical and economic hub. GENIUS Act – A Legal Turning Point in the US If Ethereum's dominant position in stablecoins has been structural, then the recent legal factors have further accelerated this trend. Notably, the GENIUS Act – a new law in the U.S. that establishes the legal framework for the issuance and circulation of stablecoins – has triggered a strong wave of activity in DeFi, NFTs, and the spot market right in July. Not only stopping at the crypto space, Wall Street and Web2 corporations are also getting more involved: Circle (USDC) listed on the stock exchange. Robinhood launches Layer 2 on Ethereum. MetaMask partners with Stripe to integrate direct payments. These steps show that Ethereum is not just the infrastructure of crypto, but is becoming the platform of programmable global finance. Opportunities and Challenges JPMorgan's forecast suggests that the stablecoin market could reach $500 billion by 2028. Standard Chartered is even more optimistic, expecting $750 billion by 2026. This gap reflects uncertainty, but at the same time shows enormous growth potential. However, this high concentration also poses challenges for Ethereum: Scalability to meet the increasing transaction volume. System security in the context of growing storage value. Neutrality in the face of participation from financial corporations and private interests. Conclusion The alliance between Ethereum and stablecoins is not just a technical story, but a long-term strategy for the future of tokenized finance. If this trend continues, Ethereum could very well become the "operating system" of global digital currency, where stablecoins serve as the standard payment currency of the blockchain era.