Sooner Than Expected
October 17, 2025 — Ethereum’s dominance in decentralized finance (DeFi) continues to grow, with its total stablecoin supply hitting a new record high of $162.3 billion, according to data from DeFiLlama. The milestone underscores rising demand for tokenized assets and the growing use of the Ethereum blockchain for real-world financial applications.
The supply surge — up from around $130 billion in July — reflects renewed activity in DeFi protocols, lending platforms, and tokenized payments that increasingly rely on Ethereum as their base layer.
DeFi Activity and DEX Volumes Strengthen
Ethereum’s broader DeFi ecosystem is also gaining traction. Total value locked (TVL) across Ethereum-based protocols has climbed to $81 billion, up from roughly $60 billion just three months ago.
Meanwhile, decentralized exchange (DEX) trading volumes have stayed robust — holding above $80 billion per month for three consecutive months. Analysts see this sustained activity as evidence of deeper liquidity and growing trust in on-chain financial markets.
“Growth in stablecoins and DEX volume indicates a more mature, self-sustaining ecosystem,” said one market strategist. “It’s a sign that users and developers view Ethereum as the most reliable foundation for digital finance.”
Stablecoin issuance, which often tracks demand for blockchain-based payments and collateralized lending, is one of the strongest indicators of network health. A larger supply typically corresponds with more active liquidity and a wider user base — both critical to Ethereum’s long-term resilience.
The Flippening Debate Returns
Ethereum’s latest momentum has reignited a familiar conversation in crypto: the “flippening” — the idea that Ethereum could one day surpass Bitcoin in total market capitalization.
Tom Lee, head of research at BitMine, drew a historical parallel to the end of the gold standard in 1971, which marked a shift in global value systems.
“Ethereum could flip Bitcoin similar to how Wall Street and equities flipped gold post-1971,” Lee said in an interview with ARK Invest CEO Cathie Wood on October 16.
Lee argues that as the tokenization of real-world assets — such as stocks, real estate, and commodities — accelerates, Ethereum will become the primary settlement layer for global finance, capturing trillions in new market value.
Currently, Bitcoin’s market cap stands at approximately $2.07 trillion, compared to Ethereum’s $445 billion. While that gap remains wide, proponents believe Ethereum’s expanding utility could gradually close it over time.
Not Everyone Is Convinced
Still, skeptics — particularly among Bitcoin maximalists — caution that Ethereum’s growth is cyclical and heavily dependent on speculative DeFi activity.
Samson Mow, CEO of JAN3, maintains that Bitcoin’s scarcity and monetary purity will always make it the preferred store of value. “Ethereum’s complexity and evolving design make it less predictable,” he has argued in past interviews.
Other analysts, however, say the two networks may not need to compete directly. Ethereum’s infrastructure is increasingly viewed as the “internet of value”, while Bitcoin continues to function as the digital gold standard anchoring the broader crypto economy.
Bottom Line
Ethereum’s record-breaking $162.3B stablecoin supply, rising DeFi participation, and consistent on-chain activity all highlight the blockchain’s growing importance in digital finance.
Whether it ultimately overtakes Bitcoin or not, Ethereum’s expanding role in asset tokenization, stablecoin settlement, and DeFi liquidity reinforces its position as the cornerstone of the next phase of the crypto economy.
 continues to grow, with its total stablecoin supply hitting a new record high of $16...){kind=link}