Ethereum Activity Triples Stablecoin Supply as ETH Price Stalls
Ethereum’s price has declined to the $3,000 level amid a broader market downturn, but on-chain indicators reveal robust growth in the network’s real economy. Analysis by market expert Milk Road shows that Ethereum’s on-chain activity has outpaced price gains by 3× over the past five years. Key metrics include a 65.5× rise in stablecoin supply on Ethereum and a 21.6× increase in ETH’s fully diluted market cap. Transaction revenues, stablecoin settlement volumes and decentralized app usage continue to climb. On-chain Foundation research head Leon Waidmann reports that total on-chain stablecoins surpassed $300 billion, with Ethereum L1 securing over $170 billion. Block space usage is at an all-time high in 2025, underscoring sustained demand. The widening gap between fundamentals and market value suggests investors may be underestimating Ethereum’s strength. While short-term sentiment remains weak, the divergence often precedes price corrections that align market valuation with network activity.
Bullish
The report highlights a significant divergence between ETH’s market price and its on-chain fundamentals—stablecoin supply up 65.5×, fully diluted market cap up 21.6×, block space usage at all-time highs. Historically, such gaps have preceded price rallies as markets realign with actual network demand. While short-term volatility and bearish sentiment persist, robust transaction revenues and DApp usage underpin a bullish outlook. Traders may anticipate a rebound as fundamental growth drives renewed buying pressure.