Ethereum Becomes a Stablecoin Powerhouse as Onchain Volumes Surge

Stablecoins are dominating onchain activity once again - this time on Ethereum, where monthly transaction volume hit an all-time high in October amid a cooling crypto market.

Data from The Block shows that more than $2.8 trillion in stablecoins moved through Ethereum last month, a 45% jump from September’s previous record. The surge suggests that investors are parking capital in dollar-pegged assets while waiting for clearer market direction.

Circle’s USDC led the charge with roughly $1.6 trillion in volume, followed by Tether’s USDT at just under $900 billion. MakerDAO’s DAI trailed far behind, slipping slightly to around $136 billion. Analysts say the activity spike coincides with growing demand for yield-focused products, especially those tied to “liquid yield” tokens and new stablecoin models.

“Investors are rotating into stablecoins to preserve capital and earn yield,” said Vincent Liu, CIO at Kronos Research, adding that many are holding funds on the sidelines in anticipation of fresh market opportunities.

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With Bitcoin and Ethereum both down double digits for the month, stablecoins have become the liquidity engine of the crypto ecosystem. Issuers like Circle and Tether now account for the majority of revenue generated across blockchain protocols — mostly from interest earned on U.S. Treasury holdings that back their tokens.

According to LVRG Research’s Nick Ruck, October’s boom signals a shift in how digital dollars are being used. “Stablecoins are no longer just a trading tool,” he said. “They’ve evolved into an integral part of payments, settlements, and cross-border finance.”