Stablecoins on Ethereum
Digital assets pegged to fiat currencies like USD, issued on Ethereum for stable value transfer, DeFi collateral, and global payments.
What is Stablecoins on Ethereum?
Stablecoins on Ethereum are ERC-20 tokens maintaining a 1:1 peg to assets like USD through reserves or algorithms, powering over $142.85 billion in market cap As of 2025. Ethereum hosts 54% of the $280 billion global stablecoin supply, up from $140 billion in 2023, driven by USDT (49.25% dominance, $112B cap) and USDC. Key issuers include Tether and Circle.
Use cases span remittances (e.g., UN aid saving millions in fees) to tokenized funds, with Ethereum’s 19M daily transactions underscoring its role as the “digital dollar” backbone.
Related Terms
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Stablecoin and MasterCard
Mastercard's network enabling stablecoins like USDC and PYUSD for merchant settlements and digital asset transactions in 2025.
Don't Trust, Verify
"Don't Trust, Verify" is a core principle in blockchain technology, emphasizing that users should independently validate transactions and data on the network rather than relying on intermediaries.
Impermanent Loss Amplification
The heightened risk of value loss for liquidity providers when using concentrated positions, exacerbated by price movements outside specified ranges.
Index Price
The reference price of a digital asset derived from external spot markets.
Gas Cost Complexity
The variable and cumulative transaction fees on blockchains that complicate liquidity provision and trading in DeFi.