- The stablecoin market cap hits $227B, with $123B on Ethereum alone.
- Ethereum L2 fees now match or beat Solana’s on most days.
- ETH exchange balances fall to multi-year lows, tightening supply.
The progress in scalability is now such that Ethereum Layer 2 networks are processing transactions as cheaply as Solana. Meanwhile, the stablecoins on Ethereum have hit $123 billion, taking the total stablecoin market to a new record of $227 billion.
Stablecoin Market Cap Reaches Record $227 Billion
A report by DeFiLlama shows that the total market cap of all stablecoins in circulation reached a new record of $227.26 billion. The rise is a $2.94 billion increase in just 24 hours, as demand for stable assets continues to grow during volatile times.
Ethereum remains the leader in the space, with over $123.35 billion in stablecoins now in circulation on its network, up from just $22 billion in January 2021. This rapid growth indicates that Ethereum-based assets are being used more and more in decentralized finance, trading and payments.
Additionally, it demonstrates increasing confidence in Ethereum’s capacity to handle high volumes of on-chain activity even in price volatility. Since ETH first hit $1,400, Ethereum’s stablecoin market cap has increased by a factor of 1,000,000, according to analyst Ryan Berckmans. This massive rise shows that Ethereum is the main settlement layer for dollar-pegged assets on chain.
Transaction Costs Fall Across Ethereum Layer 2s
Meanwhile, according to new data from OnchainHQ, Ethereum Layer 2 networks are becoming more competitive with alternatives such as Solana. In the last few months, median transaction costs on L2 chains such as Arbitrum, Zksync, and Base have plummeted.
Now, most Layer 2s are now processing transactions at or below Solana’s cost levels. For example, Arbitrum and Zksync will often have transaction fees under $0.01. In comparison, Ethereum’s base layer fees are still above $1, making L2 scaling solutions an efficient way to scale.
The trend points to improved accessibility and user growth potential. Ethereum L2s are poised to attract more users from high-cost chains and centralized services with cheaper fees and faster transactions. This is especially true for applications that need to carry out frequent or microtransactions, such as gaming or social finance platforms.
Developer Activity Supports Broad Ethereum Ecosystem
In addition to its growing stablecoin base and lower transaction fees, Ethereum also has strong developer activity. Ethereum Layer 2s have 1,385 active developers, as per a chart comparing active developers per blockchain type.
Among EVM-compatible L1s, there are 804 developers, and for the non-EVM-compatible L1s, there are 1,752. But “Other Types”, a combination of protocols, multi-chain tools, and cross-chain apps, has 19,941 developers. These figures illustrate where builders are focused and how the various parts of the ecosystem are evolving.
Long-term innovation is supported by strong developer participation. The blockchain grows with new apps, tools and infrastructure as more developers build on Ethereum and its L2s. This can attract more users and more on-chain activity and scale the network.
Ethereum L2s are considered adoption accelerators. They are cheaper and faster, making them perfect for developers building blockchain solutions in the real world. This makes the Ethereum network useful for more than just finance and into fields such as identity, gaming, and decentralized social media.
Exchange Balances Show Reduced Sell Pressure on ETH
More ETH leaves centralized exchanges and supply dynamics on Ethereum continue to shift. According to Glassnode data Ethereum’s percent balance on exchanges has reached lows, levels not seen in years.
From around 24% in 2022, ETH held on exchanges has steadily declined to below 13% by April 2025. Price action has also been volatile, which could mean that holders are simply moving their ETH to self-custody or staking instead of selling.
This is a trend that shows lower available supply on exchanges, which in turn can decrease short-term selling pressure. Long-term holders may also be showing growing confidence with fewer tokens on trading platforms. The supply of tradable ETH shrinks even more as liquidity tightens and demand rises from DeFi, NFTs, and rollups.
