- The market cap of Ethereum stablecoins has risen by more than $164 billion, thanks to growing adoption and regulatory developments.
- Despite the significant rise in the stablecoin’s market cap, Ethereum still faces revenue issues after the Dencun upgrade.
- The approval of the GENIUS Act in 2025 and the progress of the CLARITY Act have strengthened the confidence of major financial institutions and banks in integrating digital assets into their existing infrastructure.
Amid positive regulatory developments and growing adoption of stablecoins by traditional players, Ethereum has seen a stunning jump in stablecoin market cap, rising by over $164 billion on May 23, 2026.
(source: DeFiLlama)
The impressive market cap of the stablecoin on Ethereum makes it the largest stablecoin blockchain network, holding more than 50% market share of the total market cap of $323 billion. This makes it the largest settlement layer for dollar-pegged stablecoins by outperforming Tron and other chains.
Ethereum-based stablecoins are seeing growth in adoption following the approval of the GENIUS Act
The rise in the market value of stablecoins comes after their increasing integration into the traditional finance sector, as they offer many benefits. In the past few months, major institutions have chosen the Ethereum network for their operations due to its strong security, liquidity, etc.
Major stablecoin issuers such as Tether for USDT and Circle for USDC use Ethereum as their mainnet. USDT is the largest stablecoin pegged to the US dollar at the moment, which has a market capitalization of around $189 billion as it is used for various purposes such as payments, cross-border remittances, decentralized finance, and tokenized real assets.
Aside from its adoption, major developments in the regulatory framework for digital assets have played a major role in enhancing the confidence of financial institutions. Last year, US President Donald Trump officially signed the agreement genius The law and its transformation into the first federal law for the stablecoin market. This moment sparked excitement in the digital assets industry, and many major financial institutions from the world of traditional finance began rushing to integrate digital assets into their existing infrastructure.
Major payment companies such as Visa, Stripe, through its acquisition of Bridge, and PayPal have also integrated stablecoins to maintain their dominance in the digital payment ecosystem by adopting new generation innovations. The majority of these entities use Ethereum as the main blockchain network.
For example, PayPal’s original stablecoin, known as PYUSD, is available on Ethereum alongside other blockchains. Likewise, Coinbase launched its own stablecoin as a service player in 2025, which also allows users to integrate Ethereum. This platform allows users to create and issue their own USDC-backed stablecoins. After the launch, many partners joined this project, including Flipcash.
Amid the boom in the stablecoin market, the banking sector has also expressed interest in adopting digital dollars available on the blockchain. Financial giants like BlackRock are rapidly developing infrastructure to integrate stablecoins for transaction settlement. In a similar trend, JP Morgan and other banks are also experimenting with deposit tokens and cross-chain treasury solutions.
The Ethereum network is growing, but revenues are declining
The increase in the market capitalization of stablecoins on the blockchain network comes after it recorded the highest number of transactions in a single day in April.
(source: Athirscan)
According to the data on the chain Athirscanthe network recorded around 3.6 million transactions on April 28, resulting in a new all-time high in the history of the Ethereum network. This large number of transactions helped the network record a high of more than 72 million transactions during the entire month. The increase in network activity comes from increased stablecoin and decentralized finance activities.
Despite the growth in network activities, Ethereum is also facing problems in order to generate effective revenue. The fees paid by users on the network and the burning of ETH tokens decreased after the Dencun upgrade.
Recently, former Ethereum Foundation researcher Dankrad Fest proposed a new solution An organization that is “economically compatible with Ethereum.”
Despite the growth in the network, the Ethereum The price is still consolidating between a narrow range of around $2,100 to $2,250. At the time of writing this article, the price of ETH is hovering around $2,117 With a market capitalization of $255 billion CoinMarketCap.
Read also: SEC postpones innovation exemption for tokenized shares
