{"id":521271,"date":"2025-08-25T03:30:18","date_gmt":"2025-08-24T22:00:18","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=521271"},"modified":"2025-08-24T15:00:21","modified_gmt":"2025-08-24T09:30:21","slug":"how-stablecoin-inflows-are-shaping-the-l1-price-race","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/how-stablecoin-inflows-are-shaping-the-l1-price-race\/","title":{"rendered":"How stablecoin inflows are shaping the L1 price race"},"content":{"rendered":"

Key Takeaways<\/strong><\/h2>\n

Stablecoin supply has more than doubled in under 24 months. How is this L1 stablecoin supply gap shaping price divergence?<\/em><\/p>\n

\n

One landmark bill, major market share grabs, and domestic launches pegged to local currencies later, it\u2019s no shock: Stablecoin supply<\/a> has more than doubled in under two years.<\/span><\/p>\n

Since January \u201924, circulating supply has jumped from $130 billion to $270 billion. In fact, the top four issuers now control 96% of the market.<\/span><\/p>\n

Tether [USDT]<\/a> remained the liquidity anchor, while Circle [USDC]<\/a>, Ethena [ENA]<\/a>, and Sky [SKY]<\/a> captured the rest.<\/span><\/p>\n

However, now the narrative is shifting: L1s are racing to capture these stablecoin flows. Consequently, could this be the driver behind the recent L1 price divergences?<\/span><\/p>\n

Stablecoin surge sparks L1 competition<\/b><\/h2>\n

Stablecoin supply has surged across blockchains since 2018, driving a clear divergence in L1 dominance.\u00a0<\/span><\/p>\n

Notably, Ethereum [ETH]<\/a> and Tron [TRX]<\/a> lead the pack, together controlling 90% of total supply, while Solana [SOL]<\/a> has crossed the $10 billion threshold, securing the third spot in stablecoin adoption.<\/span><\/p>\n

Meanwhile, smaller chains and Layer-2s like BNB Chain, Avalanche, Arbitrum One, Base, and zkSync Era are scaling steadily, gradually capturing incremental stablecoin flows.<\/span><\/p>\n

\"Stablecoin\"<\/a>
Source: Token Terminal<\/figcaption><\/figure>\n

All in all, L1s are clearly competing for stablecoin capital. The logic is simple: This widening L1 stablecoin gap is shaping how money flows, and ultimately, influencing price discovery.<\/span><\/p>\n

Higher market share means more liquidity staying on-network, fueling<\/a> DeFi activity, staking flows, and transaction demand, which can push prices higher as bid-side pressure accumulates.<\/span><\/p>\n

According to AMBCrypto, examining cross-chain price divergences would provide a clear validation of this thesis.<\/span><\/p>\n

Tracking capital flows and price impact<\/strong><\/h2>\n

On-chain, stablecoin dominance is clearly aligning with technicals.<\/span><\/p>\n

Tron [TRX]<\/a>, for example, has absorbed nearly $20 billion in stablecoins this year, pushing total supply to a record $82 billion. The impact? TRX is up almost 80% to $0.36, riding nine consecutive green weeks.<\/span><\/p>\n

By contrast, Solana [SOL]<\/a> has added roughly $8 billion in network stablecoins, but is still down 2% from its $213 yearly open.<\/span><\/p>\n

\"ETH<\/a>
Source: Token Terminal<\/figcaption><\/figure>\n

Ethereum [ETH]<\/a>, meanwhile, is clearly outperforming the rest.\u00a0<\/span><\/p>\n

As the chart shows, the network has onboarded nearly $30 billion in stablecoins. Interestingly, almost 90% of this inflow has occurred since May, coinciding with ETH\u2019s 150%+ rally off its $1,800 Q2 base.<\/span><\/p>\n

In short, this divergence shows stablecoin inflows translating unevenly into price action. With 90% of supply concentrated<\/a> in two networks, the L1s dominating liquidity are clearly driving the biggest price moves.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Widening stablecoin gaps: A key driver of L1 divergence?<\/p>\n","protected":false},"author":113,"featured_media":521328,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[31,66,3,4,5825,20],"tags":[],"class_list":["post-521271","post","type-post","status-publish","format-standard","has-post-thumbnail","category-altcoins-news","category-new-news","category-news","category-social","category-stablecoins","category-trading-view"],"acf":[],"yoast_head":"\nHow stablecoin inflows are shaping the L1 price race - AMBCrypto<\/title>\n<meta name=\"description\" content=\"Stablecoins are fueling a new L1 race. 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