Ethereum Monthly Stablecoin Volume Hits $2.82 Trillion in October, Setting New Record

While the broader cryptocurrency market slowed down in October, following its all-time highs earlier in the month, many investors shifted their focus from speculation to strategies that could still generate returns. This change in behavior fueled a surge in stablecoin activity, particularly on Ethereum, where transaction volumes reached record levels.

Ethereum’s Stablecoin Volume Surges to All-Time High

Ethereum-based stablecoins saw a sharp rise in transactional activity throughout October, signalling renewed demand across the network. Data from The Block showed that total monthly stablecoin transaction volume on Ethereum reached around $2.82 trillion, surpassing the previous record of $1.94 trillion set in September. The 45% monthly increase reinforced Ethereum’s stronghold as the leading platform for stablecoin liquidity and transfer activity within the crypto ecosystem.

Among individual stablecoins, here is how the trading volumes shaped up in October:

• Circle’s USDC led the market, reaching a total volume of $1.62 trillion, up from $1.05 trillion in September, maintaining its position as the most actively traded stablecoin.
• Following closely, Tether’s USDT saw its volume rise to $895.49 billion, up from $580 billion the previous month, continuing its strong presence in the market.
• Meanwhile, MakerDAO’s DAI experienced a slight decline, recording $136 billion, down from $141.2 billion in September.
• Other stablecoins collectively accounted for the remaining trading volume, showing smaller but still notable contributions to the overall market.

At the same time, overall stablecoin values continued to rise. Data from DeFiLlama showed that the combined market capitalization has reached $307.58 billion , with Ethereum-based stablecoins making up $165.23 billion of this total, or about 53.7% of the global stablecoin market, reinforcing Ethereum’s continued leadership in blockchain-based finance.

Further figures from Token Terminal revealed that the total stablecoin supply on Ethereum has now surpassed $184 billion, reflecting an increase of over $100 billion since January 2024. Transfer activity has also grown steadily, with stablecoin velocity trending upward—indicating a higher frequency of movement across the network.

Liquidity Shifts Amid Market Pullback

According to Vincent Liu, Chief Investment Officer at Kronos Research, the rise in stablecoin activity reflects traders carefully managing their funds as leading cryptocurrencies pull back in value. He added that many investors have been holding capital in stablecoins to position themselves for potential buying opportunities during market dips. These tokens, Liu added, serve as both a hedge against volatility and a short-term yield tool while waiting for new entry points.

The timing of the stablecoin spike coincided with a broader market cooldown following months of strong rallies. Over the past month, Bitcoin has fallen by more than 12%, trading around $107,390 after another 3% drop in the last 24 hours. Ethereum also retreated by over 17% during the same period, currently changing hands near $3,710 after slipping another 4% in the past day.

This market correction appears to have prompted traders to move their holdings into more stable assets, with many favoring this class of digital asset as safe parking options while yields remain attractive across decentralized finance protocols.

New Drivers of Stablecoin Growth

Adding more context, Min Jung, a research associate at Presto Research, noted that stablecoins have been among the most dynamic areas of the crypto sector in recent months. She attributed the latest surge to a mix of market developments, including Circle’s upcoming IPO and the Genius Act, which has provided clearer regulatory support for stablecoin operations.

Jung further pointed out that yield farming—especially those involving liquid yield tokens—has drawn growing interest from traders seeking better returns. At the same time, new stablecoins built around innovative mechanisms continue to attract users looking to diversify income streams within the decentralized finance space.

These combined factors have created the perfect environment for stablecoins to thrive. As traders search for yield and stability amid market uncertainty, Ethereum has once again proven to be the preferred network for liquidity, transfer efficiency, and innovation within the digital asset ecosystem.