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Key Highlights:
- Stablecoin volume on Ethereum L2s surged past $22M monthly by late 2024
- Weekly active Ethereum addresses surpassed 10 million in early 2025
- Ethereum gas prices hit a record low of 2.71 gwei.
Arbitrum and Base are paving the way for Ethereum Layer 2 chains to dominate stablecoin activity. Together, they handle over $22 Million in monthly volume.
ETH gas prices have reached record lows, promoting wider network adoption. This development also supports faster and more efficient payments.
Stablecoin Supply and Payments Surge Across the Ethereum Ecosystem
The total supply of stablecoins has reached an all-time high in Ethereum, with a sharp increase in activity. As per Token Terminal, the supply of stablecoins on ETH reached $133 Billion in early 2025.
The level is the highest ever recorded on the chain and follows a rebound from a slump through most of 2023.
Supply was under $50 Billion from 2018 to early 2021 but grew quickly in the following years. In 2022, supply peaked. In 2023, it dropped, and in mid-2024, it began to climb again.
The rise in supply is also seen in increasing payment volumes. Artemis data revealed that ETH and its Layer 2 (L2) chains now dominate the stablecoin transactions. By late 2024, the total monthly payment volume across all chains was already $22 million.
Arbitrum, Base, and Ethereum mainnet were the most significant contributors. Although activity still happens on BSC and Avalanche, the majority of volume has moved to cheaper Ethereum-based chains.
This shift highlighted users’ preference for more affordable and faster platforms. They aim to achieve this without moving away from the Ethereum network.
The trend started growing in early 2024 and has been increasing since then. L2s are taking a bigger slice of stablecoin usage due to efficiency and cost benefits.
User Activity Reaches Record Highs in the Ethereum Ecosystem
New highs in user engagement in the ETH ecosystem accompany the growth in stablecoin usage. According to GrowThePie data, weekly active addresses topped 10 million early in 2025.
It was a big jump from the beginning of 2023, when weekly activity was under 3 million. Since mid-2023, wallet activity has been on an upward trend, with new peaks in late 2024 and early 2025.
A significant number of these users are interacting over multiple chains. Cross-chain engagement is also on the rise, as more than 600,000 wallets used two or more chains in the same week.
The higher transaction volume on L2s drives the rise in users compared to the Ethereum mainnet. These platforms also offer lower fees, attracting more activity.
Layer 2 dominance has also grown. At the moment, it sits at 4.35x more than mainnet activity, a 5.45% increase from the last week alone. This signaled that users are moving away from Ethereum and using L2s to enjoy faster and cheaper experiences.
Gas Prices Drop to All-Time Lows, Supporting L2 Growth
Meanwhile, ETH gas prices have hit their lowest levels ever recorded. According to CryptoRank, the average gas price in March 2025 was as low as 2.71 gwei.
This marks the lowest monthly average in the history of Ethereum. It’s a significant decline from the 49.0 gwei recorded in March 2024.
The reduction in gas prices is due mainly to a raised gas limit, the first increase since 2021. This change enables more transactions to be processed in each block, thus reducing congestion and cost.
From May to August, prices fell from 20.6 gwei to below 10 gwei, a steady decline that started in mid-2024. The trend carried on until the end of the year and into 2025.
The network has become more accessible for stablecoin transfers and high-frequency applications with lower fees. This also supports the rise of L2s, which already have cheaper fees than the mainnet.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
