Ethereum Stablecoins Overview Types Applications and Market Trends

Mainstream types of stablecoin

The main stablecoins on Ethereum include:

• USDC (USD Coin): Issued by Circle and Coinbase, widely used in DeFi and payments.
• DAI: A decentralized stablecoin issued by MakerDAO, maintained at a stable value through smart contracts.
• USDT (Tether): The largest market cap, supports multiple chains, widely adopted by mainstream exchanges and payments.

Different stablecoins play various roles in the ecosystem, with USDC and DAI focusing more on DeFi, while USDT is used more for liquidity and trading.

Market Performance and Scale

As of November 2025, the price of Ethereum is approximately $3,700, with a total market capitalization of about $450 billion. The total market capitalization of stablecoins on the Ethereum chain reaches approximately $120 billion, accounting for about half of the global market share.

Main application scenarios

• Decentralized Finance (DeFi): The core assets of applications such as lending, trading, and insurance.
• Cross-border payments: providing quick and low-cost transfer methods for regions with weak financial infrastructure.
• Digital asset trading: stable trading pairs as a basis, promoting market liquidity.

Challenges and Risks

The main factors that may affect the sustainable development of stablecoins are the unclear regulatory policies, vulnerabilities in smart contract technology, and fierce competition in the ecosystem.

Future Outlook

With the implementation of Ethereum 2.0 and Layer 2 scaling solutions, transaction costs and speeds are expected to be significantly optimized, and the position of stablecoins in the global payment and financial system is anticipated to continue strengthening.

Summary

Ethereum stablecoins are becoming an important cornerstone in the cryptocurrency market by reducing volatility and strengthening ecological applications.