Stablecoin issuers generated an estimated $5 billion in total annual revenue in 2025, with Ethereum serving as the primary settlement layer driving this growth. Data shows revenue attributable to Ethereum-based stablecoin supply rose consistently throughout the year, reaching roughly $1.4 billion per quarter by Q4 2025. This revenue scaled directly with the expansion of on-chain stablecoin supply, which grew by approximately $50 billion over the year to exceed $180 billion by year-end on Ethereum.
The revenue is derived from yield earned on the reserve assets backing the stablecoins. As Ethereum hosts the largest share of supply for major issuers, it captures the largest portion of this yield-driven income. This relationship underscores Ethereum's role as a foundational financial infrastructure layer, converting usage into predictable, non-speculative cash flow for issuers.
However, a significant liquidity shift occurred in January 2026. On-chain data from CryptoQuant reveals that between January 19 and 20, roughly $6.5 billion in stablecoins were removed from Ethereum-based circulation. Specifically, ERC-20 USDT supply declined by about $3.0 billion and ERC-20 USDC fell by around $3.55 billion.
Simultaneously, the Tron network saw a sharp $1 billion increase in TRC-20 USDT supply, driven by a direct mint. The timing suggests a coordinated reallocation of liquidity rather than a broad exit from cryptocurrency. Analysts interpret this as capital rotating to lower-cost networks like Tron, which is increasingly used for derivatives trading and OTC settlement, while demand for Ethereum-based settlement appears to be softening.
