Record-breaking stablecoin transactions in July signal a potential resurgence for DeFi sector.
In the dynamic world of decentralised finance (DeFi), USDC has emerged as the dominant force in stablecoin transactions, particularly on the Aave platform. According to recent data, USDC accounts for approximately 40-48% of all stablecoin transactions in DeFi, maintaining its leadership in on-chain volume and usage across DeFi protocols including Aave.
On Aave specifically, borrowing rates for USDC are generally lower than those for USDT. As of July-August 2025, USDC borrowing rates range from 0.6% to 7.51% APR, while USDT rates are higher, around 4.78% to 5.16% APR. This interest rate differential suggests that USDC is more attractive both for borrowers (due to lower rates) and likely for lenders on Aave.
The trend through 2025 has been that USDC continues to dominate DeFi stablecoin use, partially attributed to its broad adoption, transparency, and integration. For example, platforms like MetaMask have integrated USDC and USDT lending powered by Aave, enabling passive yield easily on these stablecoins directly in wallets powered by Aave. USDC is frequently preferred for its stability and volume.
USDT, while still actively used, has less market share and generally slightly higher borrowing costs on Aave. This could potentially reflect risk or demand differentials.
In the stablecoin market, USDT remains dominant by supply, with a circulating value of $164.70 billion. However, the surge in stablecoin activity continues a strong uptrend that began earlier this year, with on-chain stablecoin transactions generating nearly $200 billion in volume in the first five days of August. This is the highest monthly figure ever, according to blockchain analytics firm Sentora.
The amount of USDT supplied on Aave has surged by 123% this year, reaching nearly $7.5 billion. MakerDAO's DAI accounts for around 17-33% of monthly on-chain volume. USDe's on-chain activity makes up only a modest 3% of monthly volume.
The recent passage of the U.S. GENIUS Act officially regulates fiat-pegged digital tokens. This regulatory development could potentially impact the stablecoin market, including the usage of USDC and USDT on platforms like Aave.
Decentralized finance (DeFi) is experiencing a resurgence. DeFi's Total Value Locked (TVL) has hit a three-year high of $179 billion. Meanwhile, Circle, the issuer of USDC, is pushing ahead with growth plans, aiming to secure up to $624 million through a public offering.
However, concerns about the security of USDC have recently surfaced due to a wallet-draining scam. This underscores the importance of continued vigilance and best practices in the use of digital assets.
In conclusion, the trend on Aave shows that USDC remains more dominant and preferred than USDT in the DeFi sector. The lower borrowing rates for USDC, its broad adoption, transparency, and integration, and its stability make it a popular choice among users on Aave. USDT, while still actively used, has less market share and generally slightly higher borrowing costs on Aave, potentially reflecting risk or demand differentials.
- In the DeFi sector, USDC is more dominant and preferred on Aave due to lower borrowing rates, broad adoption, transparency, and integration, as well as its stability.
- As of July-August 2025, USDC borrowing rates on Aave range from 0.6% to 7.51% APR, while USDT rates are higher, around 4.78% to 5.16% APR.
- USDC is preferred for its stability and volume in the stablecoin market, with platforms like MetaMask enabling passive yield on USDC and USDT directly in wallets powered by Aave.
- USDT, while still actively used, has less market share on DeFi protocols like Aave and generally slightly higher borrowing costs, potentially reflecting risk or demand differentials.
- The surge in stablecoin activity has led to on-chain stablecoin transactions generating nearly $200 billion in volume in the first five days of August, making it the highest monthly figure ever, according to blockchain analytics firm Sentora.
- The recent passage of the U.S. GENIUS Act officially regulates fiat-pegged digital tokens, which could potentially impact the stablecoin market, including the usage of USDC and USDT on platforms like Aave.
