Stablecoin Flow Shifts to New Chains in Q1, Sparking Growth in DeFi
In the first quarter of 2025, stablecoins saw a notable redistribution across various blockchains, with many smaller and previously underutilized networks experiencing substantial growth.
Although Ethereum and TRON remained dominant in stablecoin usage, the biggest percentage increases in stablecoin supply occurred on these emerging chains as investors sought new opportunities.
The overall supply of stablecoins grew to 231.9 billion tokens by March, reflecting a 2.88% rise from the previous month. Much of this growth stemmed from the minting of USDT and USDC, alongside the expansion of crypto-collateralized stablecoins. These assets now account for 8.2% of the stablecoin market, showcasing increased interest in using altcoins as collateral.
Smaller networks like Morph, Cronos, and Stacks saw substantial inflows of stablecoins. Morph Finance even began testing its own algorithmic stablecoin, while Cronos introduced its native USC stablecoin. Algorand, ZKSync, and Hedera also attracted stablecoin liquidity, mainly in the form of USDC, to support a more secure and regulated ecosystem.
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However, the most significant change was in Solana, which saw its stablecoin supply surge by 146%, largely driven by USDC’s special minting for the Solana ecosystem. This boost in stablecoins helped reignite activity on Solana, particularly in DeFi protocols like Kamino Lending.
In addition, centralized exchanges remained major players, holding over $44 billion of the stablecoin supply, driven by strong demand for derivatives. DeFi protocols also saw notable inflows, with $707 million in net stablecoin deposits. As liquidity moved into these platforms, blockchain ecosystems adapted, with platforms like TRON and Solana seeing the highest levels of daily wallet activity.
Despite some volatility, the market for stablecoins continues to evolve, with new ecosystems emerging as key players, signaling a shift in how stablecoins are used across both traditional and decentralized finance sectors.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
