DeFi revival ahead? – Stablecoin volume hits record $1.5T in July

Key Takeaway

Stablecoin on-chain volume reached $1.5 trillion in July, signaling a DeFi resurgence fueled by Ethereum’s rally and regulatory clarity. Though USDC led in DeFi usage, USDT remains dominant by supply, with renewed momentum on lending platforms.

Decentralized finance (DeFi) appears to be regaining momentum, with stablecoin activity hitting a new peak.

In July 2025, stablecoins recorded over $1.5 trillion in on-chain volume, the highest monthly figure ever, according to blockchain analytics firm Sentora (formerly IntoTheBlock).

Source: Sentora/X

Charts show that this surge continues a strong uptrend that began earlier this year, marking a sharp rebound from January’s $950 billion and reinforcing stablecoins’ vital role in DeFi’s revival.

In just the first five days of August, on-chain stablecoin transactions have generated nearly $200 billion in volume, putting the market on track to exceed $1.2 trillion for the month.

Much of this renewed activity is being driven by Ethereum’s strong performance and rising price, which has reignited interest across the DeFi ecosystem.

Additionally, DeFi’s Total Value Locked (TVL) has hit a three-year high of $179 billion, fueled by inflows into liquid staking protocols and ETH’s climb toward the $4,000 mark.

Taken together, these trends highlight the growing adoption of stablecoins for on-chain transactions, especially in light of the recent passage of the U.S. GENIUS Act, which officially regulates fiat-pegged digital tokens.

USDC vs USDT

In this surge, Circle’s USDC has emerged as the dominant force in DeFi stablecoin transactions throughout 2025, consistently accounting for 40–48% of all on-chain stablecoin volume.

On the other hand, Tether’s USDT and MakerDAO’s DAI have contributed less, accounting for around 20–27% and 17–33% of the volume, respectively, depending on the month.

Together, these three stablecoins make up over 90% of monthly on-chain activity, with only Ethena’s [ENA] USDe coming close at a modest 3%.

While USDC leads in volume, USDT is quietly gaining ground again, especially on DeFi protocols.

Notably, the amount of USDT supplied on Aave [AAVE] has surged by 123% this year, reaching nearly $7.5 billion, signaling a resurgence in its on-chain demand.

Highlighting which, Sentora added, 

“The amount of USDT supplied on @aave has increased by 123% since the start of this year and is approaching $7.5 billion.”

Source: Sentora/X

Is USDT losing ground?

Despite USDC’s stronghold in on-chain activity, USDT remains the largest stablecoin by supply, commanding a 61.41% market dominance with a circulating value of $164.70 billion, up 3.28% over the past month.

Meanwhile, concerns around USDC’s security also recently surfaced after a user lost over $908,000 to a wallet-draining scam tied to an old contract approval.

Still, Circle continues to push ahead with its growth plans, recently announcing an ambitious fundraising move to secure up to $624 million through a public offering, targeting a fully diluted valuation of $6.7 billion.