According to @MilkRoadDaily, Ethereum-based stablecoin supply has reached an all-time high of $167 billion (source: X post by @MilkRoadDaily, Aug 30, 2025). The account reports $2.4 billion was added in a single day and that the supply has more than doubled since the start of 2024 (source: X post by @MilkRoadDaily, Aug 30, 2025). They state that higher stablecoin balances represent sidelined cash that could rotate into altcoins, highlighting potential liquidity for ETH ecosystem assets if deployed (source: X post by @MilkRoadDaily, Aug 30, 2025).

According to @LexSokolin, banks rushing to issue stablecoins could become the largest holders of ETH, signaling a potential structural demand driver for Ethereum (ETH) from institutional issuers, which traders should monitor for market impact, source: @LexSokolin. On Ethereum, transaction fees are paid in ETH, so high-volume stablecoin minting, transfers, and treasury operations on mainnet or many L2s require ongoing ETH balances for gas, linking bank-issued stablecoin activity directly to ETH demand, source: Ethereum.org. Banks have already explored or launched fiat-token projects on Ethereum, including Societe Generale-FORGE’s EUR CoinVertible (EURCV) and ANZ’s A$DC pilots, illustrating early institutional adoption of Ethereum rails relevant to this thesis, source: Societe Generale-FORGE; ANZ. For trading strategy, tracking new bank stablecoin launches on Ethereum, issuer-linked ETH treasury addresses, and changes in gas consumption can help anticipate potential shifts in ETH spot liquidity, staking-related flows, and L2 activity consistent with this view, source: @LexSokolin; Ethereum.org.

According to @MilkRoadDaily, stablecoins on Ethereum have surpassed 140 billion dollars, reinforcing Ethereum’s role as a global settlement layer, source: Milk Road on X dated August 9, 2025. For trading, larger stablecoin balances on Ethereum have historically coincided with deeper DEX liquidity and tighter spreads across ETH, USDT and USDC pairs, source: Kaiko research on DEX market depth and stablecoin liquidity, 2023. In prior cycles, growth in stablecoin supply has aligned with higher risk appetite as tracked by stablecoin supply metrics, source: Glassnode research on stablecoin supply dynamics, 2021–2024. Monitoring net mint and burn of USDT and USDC on Ethereum alongside exchange netflows helps gauge near-term buying power, source: Nansen on-chain dashboards and CryptoQuant stablecoin flow metrics, 2022–2024. Elevated stablecoin transfer activity can increase gas usage and ETH burn under EIP-1559, affecting ETH net issuance, source: Ethereum Foundation EIP-1559 documentation and on-chain burn analytics.