Ethereum’s Rise as a Settlement Layer: Key Highlights of 2025
Ethereum continues to make headlines as the leading blockchain for stablecoin transfers and real-world asset tokenization. Stablecoin transfer volume on Ethereum surged to an all-time high of $8 trillion in Q4 2025, marking nearly a doubling from $4 trillion in Q2, according to Token Terminal. This highlights Ethereum’s growing role as a reliable global settlement layer for digital payments.
Stablecoin Issuance Soars Alongside Network Activity
The rising stablecoin issuance on Ethereum stood at $181 billion by the end of 2025, a 43% increase from the $127 billion recorded earlier that year, based on BlockWorks data. This growth paralleled a surge in overall network activity, as daily Ethereum transactions reached 2.23 million in late December, reflecting a 48% year-over-year increase.
Token Terminal also reported that monthly active addresses surpassed 10.4 million in December, while unique daily sender and receiver addresses exceeded one million, underlining the broad-based adoption of Ethereum’s blockchain.
Ethereum’s Dominance in Stablecoins and Real-World Asset Tokenization
Ethereum accounts for 65% of the total on-chain real-world asset value—$19 billion—according to RWA.xyz. When factoring in Layer 2 and Ethereum Virtual Machine (EVM)-compatible networks, that share exceeds 70%. Notably, Ethereum also hosts 57% of all stablecoin issuances, with Tether’s USDT leading the pack at $187 billion, over half of which circulates on Ethereum.
The Role of the Fusaka Upgrade and User Onboarding
Ethereum’s Fusaka upgrade, introduced in December 2025, played a critical role in reducing transaction costs through Peer Data Availability Sampling. This technical innovation benefits Layer 2 networks by lowering operating costs, enhancing scalability, and making interactions cheaper for users and developers. As a result, the network onboarded 292,000 new addresses daily in December 2025, a 110% surge from the previous month, reports Glassnode.
The upgrade’s seamless execution fueled confidence among institutional players in Ethereum’s roadmap, with rising address creation historically preceding higher transaction volumes and greater liquidity on the blockchain.
Ethereum’s Price and Market Trends
Amid strengthening fundamentals, Ethereum’s price climbed back to $3,200. However, on-chain data suggests potential resistance as some investors who purchased ETH between July and October 2025 are nearing their breakeven point, which could trigger selling pressure.
Looking ahead, market participants are closely monitoring whether Ethereum’s elevated wallet growth will sustain transaction demand and Layer 2 adoption as 2026 unfolds.
Why It Matters for Everyday Users
From decentralized finance (DeFi) apps to gaming and peer-to-peer payments, Ethereum’s improved scalability and growing use cases signal a promising future for blockchain technology. If you’re interested in exploring this space, consider investing in hardware wallets like the Ledger Nano X, which provides secure management for your digital assets.
