Stablecoins on Ethereum
Digital assets pegged to fiat currencies like USD, issued on Ethereum for stable value transfer, DeFi collateral, and global payments.
What is Stablecoins on Ethereum?
Stablecoins on Ethereum are ERC-20 tokens maintaining a 1:1 peg to assets like USD through reserves or algorithms, powering over $142.85 billion in market cap As of 2025. Ethereum hosts 54% of the $280 billion global stablecoin supply, up from $140 billion in 2023, driven by USDT (49.25% dominance, $112B cap) and USDC. Key issuers include Tether and Circle.
Use cases span remittances (e.g., UN aid saving millions in fees) to tokenized funds, with Ethereum’s 19M daily transactions underscoring its role as the “digital dollar” backbone.
Related Terms
Oracle (Prediction Market)
A trusted source that provides off-chain data to resolve the outcome of a prediction market contract on a blockchain.
Margin
The collateral or initial investment required to open and maintain a leveraged trading position in digital asset markets, amplifying potential profits and losses.
Fraud Proof of Ethereum Rollup
A fraud proof in Ethereum rollups is an interactive on-chain challenge mechanism that disputes invalid off-chain transaction states in optimistic rollups, enforcing correctness through economic penalties.
mNAV
Multiple of Net Asset Value - a valuation metric for digital asset treasury companies, representing the ratio of enterprise value to digital asset holdings value.
Prediction Market
A market where participants trade digital assets to forecast the outcome of future events, with prices reflecting aggregated probabilities.
OP Stack and OP Superchain
The modular, open-source framework for building Ethereum Layer 2 chains, forming the interconnected Superchain ecosystem.