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The stablecoin supply on the Ethereum blockchain has reached a new all-time high (ATH) after Tether and Circle went on a minting spree.
According to an X post by Token Terminal, the supply of stablecoins on Ethereum has surpassed $160 billion.
“The supply has more than doubled from January ’24 levels,” Token Terminal said in its post.
Ethereum’s surging stablecoin supply cements its dominance over the stablecoin market. With the recently passed GENIUS Act legitimizing the sector, the surge of newly minted tokens, which is fuel for trading, lending, and DeFi activity, could support increased demand for ETH and potential outperformance against the broader crypto market.
The stablecoin supply peak on Ethereum comes as Tether and Circle, the issuers of leading stablecoins USDT and USDC, minted billions of dollars worth of their tokens in the last couple of days.
On-chain analytics platform Lookonchain said in an X post earlier today that Tether minted 1 billion USDT.
In just the past three days Tether and Circle have minted a combined $4 billion of their stablecoins, Lookonchain added.
USDT and USDC are currently the largest stablecoins in the market by capitalization. Tether’s USDT has a market cap of over $167.6 billion, while the capitalization for Circle’s USDC stands at about $71.56 billion.
Launched in 2019, Ethereum was the first blockchain that enabled developers to explore use cases for decentralized applications.
One such use case is stablecoins, which make it easier for investors and traders to move money across borders while not having to put up with the volatility associated with crypto.
Data from DefiLlama shows that Ethereum currently has more than half of the stablecoin market share at 53.12%. The second-largest share of the market goes to the Tron blockchain.
The large amounts of dollars being minted by issuers like Tether and Circle comes after the GENIUS Act, a key legislature that establishes guidelines for stablecoin issuers in the US, was signed into law by President Donald Trump earlier this year.
Following that signing and Ethereum’s dominance in the stablecoin market, several analysts predict that ETH’s price is poised to soar as stablecoin adoption picks up.
Earlier this month, Standard Chartered raised its year-end target for ETH from $4,000 to $7,500, and also predicted that the stablecoin supply will surge by 8X by the end of 2028.
Wall Street banking giant JPMorgan made a similarly bullish prediction for ETH this month, and said that Ethereum’s dominance in the stablecoin market positions the altcoin leader to outperform the rest of the crypto market.
Fundstrat’s CIO, Tom Lee, who is also the Chairman of the leading ETH treasury firm Bitmine Immersion Technologies, predicted during an interview with CNBC that the altcoin could soar to $16K.
ETH trades at $4,454.24 as of 1:46 a.m. EST following a 1% gain in the last 24 hours. This is after the largest altcoin by market cap saw its price tumble over 6% in the last week amid a broader crypto market sell-off.
Despite the weekly drop, ETH is still up 21% on the monthly time frame.
Read more on InsideBitcoins.com
