Ethereum’s stablecoin supply has reached an all-time high of $162.3 billion, signaling robust on-chain activity and growing investor confidence across the decentralized finance (DeFi) ecosystem.
According to data from DeFiLlama, the total value of stablecoins issued on the Ethereum network has climbed from roughly $130 billion in July to a fresh peak of $162.3 billion as of October 17, marking one of the strongest periods of network growth in 2025.
DeFi and DEX activity show renewed momentum
The expansion in stablecoin supply coincides with a resurgence in DeFi activity. Ethereum’s total value locked (TVL) has surged to $81 billion, up from $60 billion in July, while decentralized exchange (DEX) trading volumes have consistently exceeded $80 billion per month for three straight months.
Analysts note that rising stablecoin supply typically reflects higher transaction volumes and deepening liquidity, two key indicators of network health. The trend suggests that traders and developers continue to favor Ethereum as the foundational layer for tokenized finance and decentralized applications.
Analysts revisit Ethereum vs. Bitcoin debate
The latest data has reignited discussion around whether Ethereum could eventually surpass Bitcoin in total market value — a milestone known in crypto circles as the “flippening.”
Tom Lee, head of research at BitMine, compared Ethereum’s long-term potential to the evolution of global finance after the gold standard’s end in 1971.
“Ethereum could flip Bitcoin similar to how Wall Street and equities flipped gold post-1971,” Lee said in an October 16 interview with ARK Invest CEO Cathie Wood.
Bitcoin’s market capitalization currently sits around $2.07 trillion, compared to Ethereum’s $445 billion. Lee argues that as tokenization gains momentum — bringing real-world assets like stocks, bonds, and real estate on-chain — Ethereum could become the primary settlement layer for digital finance.
Industry leaders such as Joseph Lubin, co-founder of Ethereum, and Nigel Green, CEO of deVere Group, share that outlook. However, Bitcoin advocates including Samson Mow maintain that Ethereum’s growth cycles are temporary and cyclical, pointing to Bitcoin’s scarcity and monetary properties as long-term advantages.
Ethereum’s expanding role in digital finance
Despite cyclical volatility, the steady growth in stablecoin issuance highlights Ethereum’s dominant position in decentralized finance, even as competing networks such as Solana, Avalanche, and Base attract new liquidity.
With stablecoin circulation now exceeding $162 billion and DeFi metrics trending upward, Ethereum continues to solidify its status as the core infrastructure for tokenized assets — and the focal point of the next phase in blockchain-based financial innovation.
