Key Insights
Stablecoin on-chain volume hit a record high of $1.5 trillion in July, indicating a resurgence in DeFi driven by Ethereum’s rally and regulatory clarity. While USDC led in DeFi usage, USDT maintained dominance by supply, showing renewed momentum on lending platforms.
Decentralized finance (DeFi) seems to be gaining traction again, with stablecoin activity reaching unprecedented levels.
In July 2025, stablecoins recorded over $1.5 trillion in on-chain volume, the highest monthly figure ever, according to blockchain analytics firm Sentora (formerly IntoTheBlock).
Source: Sentora/X
Charts indicate that this surge continues a strong uptrend that began earlier this year, rebounding sharply from January’s $950 billion and emphasizing stablecoins’ crucial role in DeFi’s revival.
In the first five days of August alone, on-chain stablecoin transactions have already generated nearly $200 billion in volume, setting the market on course to surpass $1.2 trillion for the month.
Ethereum’s strong performance and price surge are driving much of this renewed activity, reigniting interest across the DeFi ecosystem.
Furthermore, DeFi’s Total Value Locked (TVL) has reached a three-year high of $179 billion, fueled by inflows into liquid staking protocols and ETH’s climb towards the $4,000 mark.
Collectively, these trends underscore the increasing adoption of stablecoins for on-chain transactions, especially following the recent enactment of the U.S. GENIUS Act, which formally regulates fiat-pegged digital tokens.
USDC vs USDT
In this surge, Circle’s USDC has emerged as the dominant player in DeFi stablecoin transactions in 2025, consistently representing 40–48% of all on-chain stablecoin volume.
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.
Together, these three stablecoins make up over 90% of monthly on-chain activity, with Ethena’s [ENA] USDe trailing closely at 3%.
While USDC leads in volume, USDT is quietly gaining ground again, particularly on DeFi platforms.
Significantly, the amount of USDT supplied on Aave [AAVE] has surged by 123% this year, reaching nearly $7.5 billion, indicating a resurgence in its on-chain demand.
Source: Sentora/X
Is USDT Losing Ground?
Despite USDC’s dominance in on-chain activity, USDT remains the largest stablecoin by supply, commanding a 61.41% market share with a circulating value of $164.70 billion, up 3.28% in the past month.
However, concerns about USDC’s security have emerged after a user lost over $908,000 in a wallet-draining scam linked to an old contract approval.
Nevertheless, Circle continues to forge ahead with its expansion plans, recently announcing a bold fundraising move to raise up to $624 million through a public offering, aiming for a fully diluted valuation of $6.7 billion.
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