Miss Out bull run DeFi 2021? Don't make the same mistake with 2025!

DeFi is witnessing a strong resurgence as stablecoin – the backbone of on-chain activity – has just set a new transaction record.

According to the latest report from the blockchain analytics company Sentora (formerly known as IntoTheBlock), the on-chain stablecoin transaction volume in July 2025 surpassed $1.5 trillion, marking an all-time high and demonstrating an impressive return of DeFi.

Source: Sentora/X The chart from Sentora shows that a strong upward trend began at the start of 2025, with trading volume only at 950 billion USD in January. Since then, stablecoin activity has continuously exploded, becoming the central driving force to revive the DeFi ecosystem after a long period of stagnation.

In just the first 5 days of August, the trading volume of stablecoins has reached nearly 200 billion USD, indicating that this month could easily surpass the 1.2 trillion USD mark, continuing to set new records.

Behind this impressive recovery is the "great contribution" of Ethereum, as the price of ETH surged to the 4,000 USD mark, contributing to the influx of capital into DeFi. The total value locked (TVL) across the entire DeFi ecosystem has reached 179 billion USD – the highest level since 2022. In particular, liquidity staking protocols like Lido, Rocket Pool, etc., are attracting significant amounts of money from investors seeking sustainable yields.

Overall, these trends indicate that the use of stablecoins in on-chain transactions is skyrocketing, especially after the passage of the GENIUS Act in the United States, which establishes an official regulatory framework for fiat-linked cryptocurrency tokens.

USDC dominates on-chain trading, USDT quietly regains market share

In this growth wave, Circle's USDC has emerged as the "leading guide" in DeFi transactions, accounting for 40–48% of the total monthly stablecoin trading volume throughout 2025.

Meanwhile, Tether's USDT holds the second position with a market share of 20–27%, while MakerDAO's DAI fluctuates between 17–33% depending on the month. These three tokens currently account for over 90% of stablecoin activity across the market.

Notably, although it does not lead in trading volume, USDT is quietly reclaiming its position, especially on DeFi lending protocols. According to Sentora, the volume of USDT allocated on Aave has increased by 123% since the beginning of the year, reaching nearly 7.5 billion dollars – a clear sign of increasing confidence and demand for this long-established stablecoin.

Source: Sentora/X## USDT is still the king of supply

Although it does not dominate in terms of on-chain trading volume, USDT remains the largest stablecoin in the world by total supply, holding 61.41% market share, equivalent to 164.70 billion USD in circulation, an increase of 3.28% in just one month.

In contrast, USDC has recently encountered some security issues. A user lost over 908,000 USD due to being deceived into approving an old contract, raising concerns about the safety of the protocols integrated with Circle. Nevertheless, the company is still pursuing an ambitious expansion plan, aiming to raise up to 624 million USD through an IPO, targeting a valuation of 6.7 billion USD.

The combination of record high stablecoin trading volume, explosive TVL, along with supportive macro factors such as a clear regulatory framework and a strong increase in ETH price, has painted a hopeful picture for the future of DeFi. Stablecoins are not only a means of payment but also a catalyst for restoring market confidence.

If this upward trend continues, 2025 could mark the comprehensive revival of DeFi – where stablecoins not only play a foundational role but also become the growth engine for the entire crypto industry.

Justin