news 
Ethereum Layer-2 Networks Hold Critical $13.5 Billion in Stablecoins
The stablecoin market has witnessed remarkable growth in 2024, with a significant portion of it being stored on Ethereum layer-2 networks. According to data from Tie Terminal, these networks now hold an astonishing $13.5 billion worth of stablecoins.
Arbitrum One and Base have emerged as the leading Ethereum layer-2 networks for stablecoin holdings, accounting for a substantial portion of the Ethereum layer-2 stablecoin supply. Arbitrum One dominates the market with $6.75 billion in stables locked on them, while Base follows closely with $3.56 billion.
The growth in stablecoin adoption is undeniable, as the stablecoin market capitalization has surpassed the $200 billion mark for the first time ever, excluding algorithmic stablecoins. This milestone underscores the significance of these digital assets within the cryptocurrency ecosystem.
Tether (USDT) and USD Coin (USDC) have maintained their dominant positions in the market, despite witnessing fluctuations throughout 2024. Tether remains the largest stablecoin by market capitalization, having grown from $91.7 billion at the beginning of the year to $140 billion as of December 19.
In a significant turn of events, the introduction of MiCA regulations in the European Union is expected to have a profound impact on the growth trajectory of the stablecoin sector. As these regulations take effect, adoption rates are likely to accelerate, especially within the European financial landscape.
As decentralized finance (DeFi) applications continue to rely heavily on stablecoins for payments and remittances, it appears that their integration into global financial systems will not be slowing down anytime soon.
Source: coinchapter.com
