Ethereum stablecoin supply hits record $162B, up $32B since July amid DeFi surge

Ethereum’s stablecoin supply has surged to an all-time high of $162.3 billion, up nearly 25% from approximately $130 billion in July, according to DeFiLlama data.

The growth mirrors a broader revival in decentralized finance, with total value locked climbing from $60 billion to $81 billion over the same period and DEX volumes sustaining over $80 billion monthly for three consecutive months.

The expansion has reignited debate over whether Ethereum could eventually overtake Bitcoin in market capitalization as the network cements its position as the dominant infrastructure for on-chain finance.

DeFi and DEX volumes show renewed momentum

The steady expansion of Ethereum stablecoin supply has gone hand in hand with stronger DeFi fundamentals. As liquidity deepens and DEX activity remains high, Ethereum continues to solidify its position as the primary infrastructure layer for on chain finance.

Analysts revisit the Ethereum-Bitcoin debate

The sharp increase in Ethereum stablecoin supply has reignited the long running debate about whether Ethereum could eventually surpass Bitcoin in total market capitalization a phenomenon often referred to as the “flippening.”

Tom Lee, head of research at BitMine, drew parallels between Ethereum’s potential and the rise of U.S. equities following the end of the gold standard in 1971.

“Ethereum could flip Bitcoin similar to how Wall Street and equities flipped gold post in1971,” Lee said in an October 16 interview with ARK Invest CEO Cathie Wood.

Currently, Bitcoin’s market cap stands at $2.07 trillion while Ethereum’s is around $445 billion. Lee argues that as Ethereum stablecoin supply expands and tokenization brings assets like stocks and real estate on chain, Ethereum could become the central layer for digital finance.

Other analysts, including Joseph Lubin and Nigel Green, share this optimistic outlook. However, Bitcoin supporters such as Samson Mow maintain that Ethereum’s growth cycles are temporary and cyclical rather than transformative.

Ultimately, the continued rise in Ethereum stablecoin supply highlights Ethereum’s dominance in DeFi and its pivotal role in shaping the future of blockchain based financial systems.