DeFi is experiencing a strong recovery! The on-chain monthly volume of stablecoins has exceeded $1.5 trillion, setting a new historical high, with USDC dominating the market.

According to blockchain analysis company Sentora, the on-chain trading volume of stablecoins skyrocketed to $1.5 trillion in July 2025, setting a new historical monthly record. The trading momentum remained strong in early August, with nearly $200 billion in trading volume in the first five days. Meanwhile, the total locked value in DeFi reached $179 billion, a three-year high, driven by Ethereum breaking $4,000 and the inflow of funds into liquid staking protocols. Stablecoins have become a core indicator of activity in the DeFi ecosystem, with USDC dominating, while demand for USDT surged in lending protocols.

Stablecoin volume breaks records, DeFi TVL hits a three-year high Decentralized Finance ( DeFi ) ecosystem shows a strong recovery momentum, with its core infrastructure - stablecoin's on-chain activity reaching historical peaks.

According to a report by blockchain analytics firm Sentora (formerly known as IntoTheBlock), the total on-chain transaction volume of stablecoins will exceed $1.5 trillion in July 2025, marking the highest monthly figure ever recorded. The chart shows that this surge continues the strong upward trend that began earlier this year, significantly rebounding compared to $950 billion in January, highlighting the crucial role of stablecoins in the DeFi recovery.

The growth momentum continued in August, with the on-chain stablecoin trading volume approaching $200 billion in just the first five days of August. If this pace continues, the monthly trading volume is expected to exceed $1.2 trillion.

The increase in this activity is closely related to Ethereum's strong performance and price rise, which has rekindled market interest in the entire Decentralized Finance ecosystem. In addition, the inflow of funds into liquid staking protocols and Ethereum's rise towards the $4000 mark have jointly propelled the total locked value (TVL) of DeFi to $179 billion, reaching a three-year high.

These trends collectively indicate that the adoption of stablecoins for on-chain transactions is rapidly increasing, especially against the backdrop of the recent passage of the formal regulatory fiat-backed digital token "GENIUS Act" (stablecoin regulatory framework bill) in the United States.

USDC Dominates Transactions, USDT Lending Demand Soars In this round of stablecoin trading wave, USDC issued by Circle has become the absolute main force in the DeFi ecosystem stablecoin trading of 2025. Data shows that USDC continues to account for 40%-48% of the total trading volume of on-chain stablecoins.

In comparison, Tether's USDT and MakerDAO's DAI have lower shares, contributing approximately 20%-27% and 17%-33% of the volume respectively, depending on the month. These three stablecoins together account for over 90% of the monthly on-chain activity, while Ethena's USDe barely approaches with a share of about 3%.

It is worth noting that although USDC leads in trading volume, USDT is quietly regaining ground in DeFi protocols, especially in the lending sector. Sentora pointed out: “Since the beginning of this year, the supply of USDT on the Aave protocol has surged by 123%, approaching $7.5 billion.” This clearly indicates a significant rebound in on-chain demand for USDT.

Market Landscape: USDT supply remains at the top, USDC actively expanding Although USDC dominates on-chain trading activities, USDT, with a circulating market capitalization of 164.7 billion USD, still maintains the largest stablecoin position with a market share of 61.41%, having grown its market capitalization by 3.28% over the past month.

On the other hand, USDC has also faced challenges recently, as some users have fallen victim to wallet theft scams due to authorizing old contracts, resulting in losses exceeding $908,000, which has sparked brief concerns about its security. Nevertheless, Circle is still actively pursuing expansion plans and recently announced an ambitious financing plan to raise up to $624 million through a public offering, with a target fully diluted valuation of $6.7 billion.

【Conclusion】 The record-breaking on-chain trading volume of stablecoins and the new high of DeFi TVL mark the beginning of a new active cycle in the crypto market. The gradual clarification of regulatory frameworks (such as the "GENIUS Act"), the strong performance of underlying public chains like Ethereum, and the continued expansion of institutional-grade stablecoins (like USDC) together constitute a "triple benefit" for the recovery of DeFi. The dominance of USDC in trading scenarios and the rebound of USDT in the lending market reflect the differentiated trends in stablecoin applications. As capital accelerates into liquid staking and other protocols, the foundation for the recovery of the DeFi ecosystem is becoming increasingly solid, accumulating momentum for a potential "DeFi Summer 2.0." In the future, attention should be paid to the potential reshaping of the stablecoin landscape by the implementation of regulatory details, and whether institutional funds can continue to flow in to drive TVL beyond historical highs.