Key Findings
Data from July reveals a significant surge in stablecoin transactions on blockchains, hitting $1.5 trillion. This points to a resurgence in Decentralized Finance (DeFi), potentially driven by the rising value of Ethereum and increased regulatory certainty. While USDC is preferred for DeFi transactions, USDT still leads in total supply and is gaining traction on lending platforms.
Decentralized finance (DeFi) is showing signs of renewed vitality, evidenced by a surge in stablecoin activity.
In July 2025, blockchain analytics provider Sentora (formerly IntoTheBlock) reported that on-chain stablecoin transaction volume surpassed $1.5 trillion. This marks a new monthly high, reflecting increasing user engagement.
Source: Sentora/X
Data illustrates a clear upward trend that began earlier in the year, recovering from $950 billion in January. This underscores the important role stablecoins play in the DeFi ecosystem’s resurgence.
Preliminary data for the first week of August indicates sustained momentum, with nearly $200 billion in stablecoin transactions recorded, suggesting a potential monthly volume exceeding $1.2 trillion.
The strong performance and increasing value of Ethereum is a key factor driving this renewed engagement, revitalizing interest across the broader DeFi landscape.
Furthermore, the Total Value Locked (TVL) in DeFi has reached a three-year peak of $179 billion. This growth is attributed to investments in liquid staking protocols and Ethereum’s price approaching the $4,000 mark.
Collectively, these trends highlight growing adoption of stablecoins for online transactions, especially in light of recent regulatory advancements in the US, such as the GENIUS Act, that brings clarity to the operation of fiat-backed digital currencies.
USDC Versus USDT
Throughout 2025, Circle’s USDC has become a prominent stablecoin for DeFi transactions, consistently representing 40–48% of the total on-chain stablecoin volume.
In comparison, Tether’s USDT and MakerDAO’s DAI accounted for a smaller portion, contributing approximately 20–27% and 17–33% of the volume, respectively, fluctuating month by month.
Together, these three stablecoins account for over 90% of monthly on-chain activity. Ethena’s [ENA] USDe trails behind at around 3%.
While USDC sees higher transaction volume, USDT is showing signs of a comeback, particularly on DeFi platforms.
Notably, the supply of USDT on Aave [AAVE] has increased significantly, surging by 123% since the beginning of the year to almost $7.5 billion, indicating a renewed demand for USDT within DeFi.
Sentora noted:
“The supply of USDT on @aave has jumped 123% since January, nearing $7.5 billion.”
Source: Sentora/X
Is USDT’s Dominance Fading?
Despite USDC’s strength in on-chain activity, USDT continues to hold the top position among stablecoins by total supply, maintaining a market share of 61.41% with a circulating value of $164.70 billion, representing a 3.28% increase over the past month.
Separately, security vulnerabilities surrounding USDC emerged when a user lost over $908,000 in a wallet-draining scam stemming from a past contract authorization.
Nevertheless, Circle is moving forward with its expansion plans, recently announcing intentions to raise up to $624 million through a public offering, targeting a post-money valuation of $6.7 billion.