Ethereum DeFi Surges to $100B as Stablecoin Boom Hits $160B

Ethereum DeFi Grows to $100B as Stablecoins and Real-World Assets Drive Shift Toward Practical Finance

  • The value locked in Ethereum‘s decentralized finance (DeFi) economy is close to $100 billion.
  • The total amount of stablecoins on Ethereum has almost doubled since 2021, reaching $160 billion.
  • Ethereum co-founder Vitalik Buterin points to “low-risk DeFi” like payments, savings, and lending as a possible new revenue source.
  • Stablecoins and real-world asset tokens are growing rapidly on Ethereum, making up major segments of blockchain activity.
  • Current trends show a move away from speculative crypto trading toward more practical financial products on Ethereum.

Ethereum’s DeFi sector has reached nearly $100 billion in total value locked, and the total value of stablecoins held on the network stands at $160 billion. This marks significant growth in 2024, with activity shifting from speculative tokens to more stable financial products, according to new data.

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Figures from DefiLlama show that stablecoins, which are cryptocurrencies tied to assets like the U.S. dollar, have surged 700% on Ethereum since 2021. Real-world assets such as tokenized U.S. Treasury bills have also expanded to become a $9 billion market on the platform.

Vitalik Buterin, Ethereum’s co-founder, suggested in a recent blog post that stable, low-risk financial services could build sustainable revenue for Ethereum. He stated, “Non-financial and more experimental applications, are crucially important for Ethereum’s role in the world and for its culture. But they do not need to be looked to as revenue generators.” The focus now is less on speculative trading and more on foundational products like payments, savings, and collateralized lending.

Analyst Tom Lee of BitMine called stablecoins “the ‘ChatGPT’ of crypto” in a recent statement to DL News. He described Ethereum as the “backbone” for these assets, noting its reliable performance and legal recognition.

This change marks a significant shift from Ethereum’s earlier years, when decentralized finance mainly revolved around high-yield liquidity farms and digital collectibles such as NFTs. Over time, the network has worked to solve its “non-ouroboros” problem, which refers to creating real revenue beyond repeated token trading.

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Market data as of the latest report shows Bitcoin trading at $115,440, down 0.4% in 24 hours. Ethereum’s price is $4,472, showing a decrease of 0.3% in the same period.

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