Ethereum Stablecoin Supply Hits Record High
Ethereum has seen an unprecedented influx of stablecoins, adding approximately $5 billion in new stablecoins over the past week alone. This surge has pushed the network’s total stablecoin supply to an all-time high of over $165 billion, according to data from Token Terminal reported on Sunday. This figure represents more than a twofold increase since January 2024.
Data from RWA.xyz corroborates these findings, reporting $158.5 billion in Ethereum-based stablecoins, also marking a peak value. Ethereum commands a dominant 57% market share of stablecoins, far ahead of its nearest competitor, Tron, which holds 27%, and Solana with under 4%.
Expansion of Tokenized Gold and Real-World Assets
Beyond stablecoins, Ethereum is experiencing significant growth in other tokenized real-world assets (RWAs). Tokenized gold on the network has doubled year-to-date, reaching a record $2.4 billion according to Token Terminal. When including Ethereum’s layer-2 solution Polygon, Ethereum’s market share in tokenized commodities rises to 97%, with a 77% share on Ethereum alone.
Ethereum also leads in tokenized US Treasurys, commanding over 70% market share. US Treasurys are the second largest asset class moving onto blockchain technology after private credit.
Institutional Adoption and Market Impact
The increasing tokenization of RWAs has contributed to Ether’s price appreciation, which surged more than 200% since April, peaking just below $5,000 on August 24. Institutional investors have played a key role, with treasury corporations acquiring nearly 4% of Ether’s total supply within five months.
Ethereum educator Anthony Sassano attributes this momentum to Ethereum’s “credible neutrality,” emphasizing the importance of permissionless, decentralized networks for mass adoption.
Adding to this institutional momentum, Fidelity, the world’s third-largest asset manager, launched a tokenized US Treasurys fund on Ethereum. The Fidelity Digital Interest Token (FDIT), launched on-chain on September 1, currently holds over $203 million in assets, according to RWA.xyz.
Outlook
Ethereum’s leadership in stablecoins and tokenized RWAs continues to consolidate its position as the preferred blockchain for financial innovation. The integration of traditional financial products, coupled with robust network fundamentals, suggests sustained growth potential. However, market participants should monitor regulatory developments and competitive blockchain platforms that could influence Ethereum’s dominance.
FinOracleAI — Market View
The substantial growth in Ethereum-based stablecoins and tokenized real-world assets indicates strong demand for blockchain-based financial instruments, reinforcing Ethereum’s network effect. Institutional adoption, exemplified by Fidelity’s tokenized fund launch, further validates Ethereum’s role in mainstream finance. Key risks include potential regulatory scrutiny and competition from alternative blockchains. Investors should watch for continued asset tokenization trends and Ethereum’s ability to maintain its credible neutrality amid evolving market conditions.
Impact: positive
