USDC Emerges as the Leading Stablecoin Driving Ethereum’s Layer-2 Scaling Growth

Ethereum activity experienced a major shift in stablecoin usage, with USDC emerging as a leading asset as the network looks to scale further and focuses on finding new use cases.

Summary

• USDC has become one of the leading assets on Ethereum, expanding on Base and Polygon as the network works towards allowing stablecoin transfers. 
• Over the past month, USDC supply on Ethereum rose 12% as lower fees enabled transfers to under $0.01. 
• Monthly USDC transfer volume on the Ethereum mainnet reached $1.7 trillion in February 2026. 

Ethereum now offers fees under $0.01, making it perfect for everyday stablecoin transfers. Due to recent updates, sending USDT or USDC is finally cheap enough for retail users without the worry of high costs.

According to Token Terminal data, stablecoins expanded their activity and their holder account. USDC has also become a leading asset on Ethereum, enabling retail usage on the chain. 

Ethereum dominates on other chains 

Ethereum is still dominating other chains with raw stablecoin supply. L2 chains like Polygon and Base have started increasing their USDC transfers and reserves. 

USDC has officially moved ahead of USDT as the leading stablecoin on the Polygon L2 chain. On Coinbase’s Base network, stablecoin supply is heavily USDC-led, signalling a migration towards cheaper, Ethereum-adjacent settlement. 

Over the past month, the supply of USDC on Ethereum rose by 12%, as per general activity and demand for an asset compliant with MiCAR and the U.S. Genius Act. 

Vitalik Buterin and other Ethereum supporters announced new tools for Ethereum usage. The recent announcements suggest that Ethereum will be serving a wider array of apps and users. Stablecoin is one key infrastructure for various apps, which could bridge the gap between regulated finance and crypto-native tools. 

Ethereum Application at an All-Time High 

Transaction costs on Ethereum are very low, and gas has reached under 1gWei. As a result, most use cases are extremely cheap, enabling deX swaps for $0.03. 

Earlier, swaps could run up to $100, which discouraged most retail users. As the charges have been reduced, it becomes accessible to retail traders and open to wider adoption. 

Baseline NFT activity and reduced token launches are contributing to the current price levels. This enabled USDC activity to rise to an all-time high as Ethereum users demanded a liquid asset universally accepted by exchanges. 

According to Token Terminal data, USDC climbed vertically in 2025 and has near-record transfers as of February 2026. Compared to February 2025, USDC volumes have increased by 250%, crossing above $1.7 trillion in non-adjusted transfers. 

The USDC smart contracts burn 7.76 ETH in daily gas. It is ranked third, coming after USDT and ETH transfers. However, on Ethereum, USDT is the leading stablecoin. On the Polygon L2 chain, USDC has moved ahead of USDT. 

Ethereum’s new stablecoins have given the chain a new source of activity. Circle has also become a leading network in terms of non-USD stablecoins, enhancing the supply of euro and ruble-denominated tokens. 

Final Thoughts 

USDC has become the primary choice for the new, faster, and cheaper versions of Ethereum. With Ethereum’s Layer-2 scaling, transferring USDC costs less than $0.01. Moreover, banks and big firms prefer USDC as it is fully regulated and audited. USDC’s dominance on L2s like Polygon indicates that it has become a key place where people can spend and use their digital dollars.

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