There is an underlying shift taking shape in the DeFi ecosystem.
This shift is closely tief to the stablecoin market. Especially since liquidity directly drives network performance. However, as the ecosystem expands, the question remains – What defines a network’s dominance in the space?
In the past, analysts have looked at TVL as a reliable metric. More recently though, the focus has shifted towards transaction utility, where networks with higher transaction volumes signal a stronger foothold in the DeFi space.
Real-world flows drive DeFi network strength
Stablecoins like USDT and USDC are no longer just a “safe haven.”
Over time, their role has shifted towards real-world utility. In this context, the Federal Governor Stephen Miran recently noted that stablecoins “reinforce” the U.S dollar by expanding its usability across today’s financial ecosystem.
Naturally, attention is now turning to the networks that support these assets. Historically, L1s have deployed stablecoins like USDC for yield farming, locking funds to earn long-term returns, while also maintaining on-chain liquidity.
In that setup, networks with high TVL were seen as the leaders.
Take Ethereum [ETH], for example – At press time, it accounted for 64.57% of all USDC on-chain. In fact, with a total stablecoin market cap of $165 billion and a TVL of $75 billion, Ethereum stands out as a top DeFi player, leading the space in liquidity.
However, high TVL alone doesn’t tell the full story. As institutional participation grows across RWAs, settlement rails, and other applications, the focus is clearly shifting towards actual usage and transaction activity.
This highlights the ongoing “shift” in DeFi, prompting the question – Is high USDC transaction volume now the key indicator of a network’s edge, where the stablecoin’s role as a “cash leg” effectively defines dominance?
XDC sees USDC volume rival traditional payment networks
In terms of usage, stablecoins are clearly moving towards settlement rails.
Looking at the data, this shift makes sense. The 2025 McKinsey Global Payments Report revealed that the payment industry generated a record $2.5 trillion in revenue, with the market expected to hit $3 trillion by 2029.
On XDC Network [XDC], for instance, USDC transaction volume recently crossed $3 billion, reaching levels comparable to traditional payment networks. For the broader market, this underscores USDC’s integration into TradFi.
At the network level, though, the number tells us a bigger story.
According to AMBCrypto, it highlights XDC’s underlying capabilities, showing how the network is adapting to take full advantage of the shift in DeFi. One where stablecoins are breaking new ground in real-world payments.
The key indicator? USDC transaction volume.
Networks that rank higher on this metric are demonstrating growing dominance in the DeFi ecosystem. Especially since high transaction volume directly reflects real-world usage, liquidity efficiency, and institutional adoption.
Final Thoughts
- Networks like XDC handling billions in stablecoin flows are indicative of real-world usage, liquidity efficiency, and growing institutional adoption.
- Stablecoins’ role as “cash leg” positions networks for payment use cases, moving beyond yield farming and experimental activity.
