Stablecoin monthly on-chain volume reaches highest level in July with over $1.5 trillion

Stablecoin’s monthly on-chain volume reached its highest level in July, which is a sign of a resurgence in decentralized finance activity. On-chain data analytics firm, Sentora (formerly IntoTheBlock), disclosed this in an X post.

According to Sentora, the stablecoin volume for July was over $1.5 trillion, surpassing previous highs, including May 2025, when it was $1.39 trillion, and April, when it was $1.44 trillion.

Based on the chart, the new high continues a positive trend in on-chain stablecoin settlement since the start of 2025. While the volume was just $950 billion at the start of the year, it has been over $1.2 trillion in every other month of the year, apart from January and February.

Interestingly, August has already recorded almost $200 billion in on-chain volume across the first five days and is now on track to finish above $1.2 trillion by the end of the month.

Meanwhile, experts have attributed the surge in on-chain volume for stablecoins to increased DeFi activity. According to Defillama, the total value locked (TVL)  in DeFi increased by more than 3% in the last 24 hours to reach $137.33 billion.

This is mostly due to Ethereum performance, with the network performance and ETH resurgence driving renewed interest in DeFi activity. Sentora data also backs this up with the data analytics firm noting that DeFi has reached a three-year high of $179 billion this week, thanks to inflows into liquid staking protocols and  ETH ascent towards $4,000.

USDC dominates on-chain stablecoin transactions

The new milestone reflects stablecoins’ growing adoption and increasing use for on-chain transactions. With the US finally passing the GENIUS Act stablecoin law, the fiat-pegged tokens have seen their role in the financial system cemented.

Interestingly, Circle USDC dominates on-chain stablecoin volume throughout 2025, accounting for between 48% to 40% of all DeFi transactions involving stablecoins.  In comparison, Tether USDT usually accounts for around 27% – 20% of the total volume each, while MakerDAO DAI also records between 33% and 17% depending on the months.

This highlights USDC dominance on-chain, especially in recent years, with USDT and DAI now taking the backseat, although they had commanded more volume at different times. Still, these three stablecoins account for over 90% of the on-chain monthly stablecoin volume, with only Ethena USDe coming close at around 3%.

Meanwhile, USDT usage for on-chain transactions is growing again. The stablecoin has seen sizable growth on DeFi protocols this year, with the amount of USDT supplied on Aave increasing by 123% year to date and now close to $7.5 billion.

Stablecoin supply inches close to $370 billion

While USDC might dominate on-chain transactions, it is USDT that remains the biggest stablecoin by supply. With a market cap of  $164.70 billion, the stablecoin, which has seen its supply increase by 3.28% in the past month, now has 61.41% dominance.

By comparison, USDC supply is only $63.85 billion. With a similar growth trajectory over the past month, it looks unlikely to match the USDT level in supply at this rate. Meanwhile, Ethena USDe, Sky Dollar USDS, and Dai have $9.517 billion, $4.87 billion, and $4.33 billion.

USDe has been one of the best-performing stablecoins in the past month, with 79.47% growth, a performance only bested by Falcon USD (USDf), which has seen a 102% increase in that period, going from $552 million to $1.09 billion.

Overall, the stablecoin market cap has reached $268.20 billion after adding $13.2 billion in the past month. At the current market cap, stablecoin supply has already doubled in the past year, and it looks set for more growth, especially as clarity continues to develop.

In a sign of regulatory clarity, the US Securities and Exchange Commission (SEC) recently issued guidance allowing some fully backed redeemable USD stablecoins to be classified as cash equivalents. This is expected to provide some clarity in the meantime before the broader regulations arrive.