Ethereum application revenue hits new high: stablecoin trading surges, analysts warn BTC still dominates

On October 14, 2025, Ethereum’s mainnet application revenue broke a historical record, reaching $48 million in a single day, surpassing the peak in 2022. The growth was primarily driven by stablecoin transactions involving Tether’s USDT and Circle’s USDC. However, mainstream CEX analysts pointed out that Bitcoin’s strong dominance might limit Ethereum’s short-term price upside. Nonetheless, fund manager Tom Lee believes that Ethereum’s “economic machine” effect is accelerating, and it is poised to benefit from the continued expansion of stablecoins and tokenized assets in the future.

Application Revenue Hits New High: Ethereum Ecosystem Demonstrates Strong Vitality

Ethereum reached a new on-chain peak in October 2025. According to Growthepie data, on October 14, Ethereum’s mainnet application revenue hit $48 million, exceeding the $41 million record set in 2022, indicating sustained growth in economic activity and transaction demand.

(Source: Growthepie)

This data shows that Ethereum remains the " backbone network" of the blockchain economy. Even amid the rapid rise of Layer 2 solutions, its mainnet revenue continues to grow steadily.

Notably, Layer 2 networks accounted for only 14% of Ethereum’s total revenue in that month, far below the market’s previous expectations that “L2 is eating into Ethereum’s market share.” Analysts pointed out that this reflects Ethereum’s mainnet still being the primary venue for high-value transactions, especially in institutional settlement and high-value stablecoin exchanges, where its security and liquidity advantages remain dominant.

Stablecoins Drive Revenue Growth: USDT and USDC Dominate

A deeper analysis of on-chain data reveals that the core driver of Ethereum’s revenue growth is stablecoin transactions. Tether (USDT) and Circle (USDC) together account for over half of all application revenue on Ethereum, with a monthly trading volume of $46 billion in October alone.

This means Ethereum is not only the foundational network for DeFi applications but also the preferred platform for stablecoin settlements.

Industry research firm Blockworks reported that the frequency of stablecoin transfers on Ethereum now aligns with financial settlement transactions, especially in cross-border payments, stablecoin clearing, and tokenized fund settlements, where stablecoins are becoming the main medium of circulation.

This further confirms Fundstrat investment director Tom Lee’s view:

“Ethereum’s economic machine is accelerating—high throughput brings low costs, low costs lead to more usage, and more usage in turn enhances value.”

Tom Lee believes this “positive flywheel effect” will continue to expand Ethereum’s economic activity, making it a future core settlement layer for global on-chain finance.

Comparison with Other Public Chains: Ethereum Remains Industry Leader

From a comprehensive chain-wide perspective, Ethereum’s dominant position remains solid.

Latest data from Blockworks shows that over the past 30 days, Ethereum accounted for 21.5% of total on-chain application revenue, second only to Hyperliquid (HYPE) at 30%.

The third-ranked mainstream CEX chain is BNB Chain with 16%, while Solana and Tron each hold 11%, tying for fourth place.

Analysts noted that this distribution indicates that, although emerging public chains have made breakthroughs in performance, Ethereum still leads by an order of magnitude in terms of economic scale and financial trust. Particularly in high-value sectors like institutional applications, stablecoin settlements, and tokenized asset management, Ethereum’s developer ecosystem and smart contract compatibility remain unmatched.

Additionally, changes in protocol-level revenue structures are noteworthy. Currently, Ethereum’s mainnet revenue mainly comes from three participants: Tether (USDT), Circle (USDC), and Sky (formerly MakerDAO). These three contribute over 60% of protocol revenue, forming the core of Ethereum’s economic system.

Market Analysis: ETH’s Upside Potential and Risks Coexist

Despite Ethereum’s impressive revenue performance, market analysts have differing views on ETH’s price outlook.

Fund manager Tom Lee and some on-chain researchers believe that stablecoin transactions and the expansion of tokenized assets will provide long-term upward momentum for ETH. Lee’s firm, BitMine, currently holds about 3.4 million ETH, aiming to capture gains from the growth of stablecoins and RWA (Real-World Assets).

However, mainstream CEX analysts adopt a more cautious stance.

They point out that after the market correction in October, capital has flowed back into Bitcoin, and BTC’s dominance is rising again. Reports suggest that in the next 2–3 months, Bitcoin’s dominance (Bitcoin Dominance) is expected to continue increasing, which could put downward pressure on the ETH/BTC exchange rate.

Analysts state:

“In the short term, the market will still focus on Bitcoin’s safe-haven function and liquidity advantages. ETH and other altcoins may remain range-bound in the next two quarters.”

In other words, while Ethereum’s fundamentals are strong, macro capital flows may still be influenced by Bitcoin’s cyclical dominance.

The Long-Term Significance of Ethereum’s “Economic Machine” Model

The so-called “Ethereum economic machine” refers to its self-sustaining ecosystem formed through smart contract applications, stablecoin settlements, and tokenized assets.

In this model, network transaction activity continuously generates fee income (gas fees). As application usage increases, network revenue rises, attracting more developers and capital, creating a positive feedback loop.

With the acceleration of RWA (Real-World Asset) onboarding, more financial assets will be tokenized on Ethereum.

For example, tokenized bonds issued by fund companies, stablecoin payment solutions, and institutional DeFi products are gradually channeling traditional financial revenue streams into Ethereum’s ecosystem.

This trend indicates that Ethereum is transitioning from a “technological public chain” to a “global financial operating system.” Its network revenue growth is expected to become more sustainable.

ETH Price Outlook: Limited in the Short Term, Bullish in the Medium to Long Term

Currently, ETH’s price remains constrained by structural market factors.

According to on-chain analysis firm IntoTheBlock, ETH is forming a dense accumulation zone around $3,500, making short-term breakthroughs difficult. Derivatives market funding rates are near neutral, indicating a balance between bulls and bears.

If Bitcoin’s dominance continues to rise, ETH may fluctuate between $3,200 and $3,500.

However, from a medium- to long-term perspective, as on-chain revenue continues to grow, the tokenization ecosystem matures, and Ethereum 2.0 is fully implemented, ETH’s valuation model is gradually shifting from a “speculative asset” to a “cash flow asset.”

Institutional investors are increasingly focusing on protocol revenue, fee burn mechanisms, and positive correlations with stablecoin markets.

Conclusion

Ethereum’s performance in 2025 once again affirms its position as a core component of the blockchain economy. The surge in stablecoin transactions and application revenue demonstrates its powerful “economic machine” potential. However, in the context of ongoing Bitcoin dominance cycles, ETH’s short-term price may still face constraints.

From a longer-term perspective, as tokenized assets become more institutionalized and capital continues to flow in, Ethereum is poised to play an increasingly vital role in the future financial system.