Ethereum Surges in Q2: Record Staking, Stablecoin Boom, and $63 Billion TVL
Ethereum posted major gains in Q2 2025, outpacing Bitcoin as institutional interest and stablecoin adoption surged. With the GENIUS Act pending, ETH could be set for a significant rally.
Ethereum (ETH) outperformed Bitcoin by 6% in Q2 2025. The analysis from the on-chain research platform DeFi Report reveals strong bullish signals for ETH.
The report indicates that Ethereum is on the verge of a breakout, driven by institutional investment, stablecoin growth, and the potential of the GENIUS Act.
Ethereum’s Q2 2025
The DeFi Report provides a comprehensive overview of the network’s developments in the past quarter, highlighting positive factors and growth potential.
According to the report, Ethereum’s total value locked (TVL) surged 33% from the previous quarter, reaching $63.4 billion. This growth was fueled by a significant increase in stablecoins and real-world assets (RWA).
TVL on Ethereum. Source:
The DeFi Report
The stablecoin supply hit $137.4 billion, with major institutional players like BlackRock and PayPal contributing the majority of the Layer-1 TVL. DeFi activity exploded, with active loans on Ethereum and L2s rising 43% to $23.9 billion, led by Maple Finance (up 291%) and Euler Finance (up 174%).
Stablecoin supply on Ethereum in Q2. Source:
The DeFi Report
In addition, ETH staking demand hit a new high of 35.6 million ETH in Q2, up 4% from the previous quarter. The staked ETH ratio of total circulating supply reached 29.5% (an all-time high), creating deflationary pressure.
Real-world assets (RWA) on Ethereum grew 48% to $7.5 billion, driven by US Treasury bonds (up 58%) and commodities (up 24%). The report also noted institutional accumulation, with a 5.829% increase in ETH held in public treasuries during Q2.
This increase brought the total to 216,000 ETH from SharpLink Gaming and 100,000 ETH from BitDigital.
Real-world assets (RWA) on Ethereum. Source:
The DeFi Report
Regarding valuation, ETH’s Market Cap/TVL ratio recovered to 1.2 (up 19%), indicating a promising potential for price appreciation.
Impact of the GENIUS Act
The anticipated passage of the GENIUS Act this week could catalyze a significant ETH price surge. If successful, the act will legalize stablecoins in the US, enhancing liquidity and confidence in the Ethereum ecosystem.
“The GENIUS act will bring trillions of stablecoins to Ethereum – all the world’s largest banks will use Ethereum. If GENIUS act passes ETH goes up.” crypto investor Ryan commented.
However, the report warns of risks from global regulations, particularly the EU’s MiCA framework, set to take effect in Q3 2025. This could impact non-compliant stablecoins, as evidenced by Sky’s USDS dropping 7% this quarter. This poses challenges for stablecoin growth but also presents an opportunity for Ethereum to strengthen its position if it maintains compliance.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Gasoline Prices Rise in Tandem with Election Poll Trends! Goldman Sachs: With 26 Days Left Until the Midterm Election, Probability of a Democratic Sweep Rises to 65%
Goldman Sachs states that the probability of a Democratic sweep has risen to 65%, but polls in red states have historically overestimated their advantage; the rise and fall of oil prices is the decisive variable.
Goldman Sachs continues to be bullish on PJM exposure IPP: Preferred Talen Energy (TLN.US), NRG Energy (NRG.US), and Vistra (VST.US)
FERC has essentially rejected the PJM electricity proposal. Goldman Sachs states that regulatory risks have been disproven and is optimistic about three buy-rated targets: Talen Energy, Vistra, and NRG Energy. The capacity auction price for December is expected to approach the upper clearing limit.
Storage chip profits soar, why did the Korean stock market hit the brakes first? Morgan Stanley reveals the "stock price turning point" in the super cycle
The Morgan Stanley strategy team led by Shawn Kim is most optimistic about the core computing industry chain for AI infrastructure, including GPUs, ASICs, wafer foundry, and advanced packaging. They also favor the optical interconnect and high-performance network infrastructure supply chain. As for memory chips, they adopt a selective allocation approach, focusing on structural growth opportunities and tactical investments in major original manufacturers.
Crypto prices
More
