Stablecoin Flows Replace TVL As DeFi’s New Scorecard

DeFi’s scorecard is changing — and stablecoins are at the center of it. For years, total value locked (TVL) has been the go-to metric for ranking blockchains and DeFi protocols: more capital parked on-chain implied greater liquidity, activity and network strength. But as the ecosystem matures and real-world use cases — from RWAs to settlement rails — gain traction, analysts are increasingly looking past static balances to transaction utility: the actual flow of funds through a network. Why stablecoins matter Stablecoins such as USDT and USDC are no longer just a “safe haven” for traders. Their on-chain role is shifting toward payment rails and settlement infrastructure, turning them into a de facto “cash leg” for decentralized and institutional flows. As Federal Reserve Governor Stephen Miran recently put it, stablecoins “reinforce” the U.S. dollar by expanding its usability across today’s financial ecosystem. That puts a spotlight on the networks that host and route these tokens. TVL still matters — but it’s incomplete Historically, chains with high TVL — driven by yield farming and locked liquidity — were treated as market leaders. Ethereum remains dominant by that measure: at press time it accounted for about 64.57% of all on-chain USDC (sources: DeFiLlama), and the broader stablecoin market sits at roughly $165 billion while on-chain TVL totals about $75 billion. Those numbers underline Ethereum’s top-tier liquidity position. But raw TVL doesn’t capture usage. As institutional activity grows across tokenized assets, payments and settlement, networks that actually move value are proving more strategically important than those that merely hold it. Transaction volume as the new signal USDC transaction volume is emerging as a practical proxy for real-world utility and institutional adoption. Payment rails are a massive market: McKinsey’s 2025 Global Payments Report put industry revenue at a record $2.5 trillion, with projections near $3 trillion by 2029 — a clear incentive for crypto rails to compete. Concrete example: XDC Network XDC Network recently recorded more than $3 billion in USDC transaction volume, a level comparable to traditional payments networks (source: Token Terminal). That kind of throughput shows how some chains are positioning themselves as viable settlement layers for real-world payments and institutional workflows. Observers and outlets such as AMBCrypto interpret that data as evidence that networks able to sustain high stablecoin transaction volumes are adapting to DeFi’s shifting focus toward settlement utility. What to watch next - TVL will remain a useful liquidity metric, but it should be considered alongside transaction volume. - USDC (and other stablecoin) flow metrics better capture real usage, settlement activity and institutional demand. - Networks with rising stablecoin transaction volumes are likely to gain influence in DeFi’s next phase. Bottom line: As stablecoins evolve from store-of-value to settlement infrastructure, on-chain transaction volumes — especially of USDC — are becoming a key indicator of network strength and real-world relevance. Disclaimer: This content is informational and should not be considered investment advice. Cryptocurrency trading carries high risk; do your own research before making any financial decisions. © 2026 AMBCrypto (sources: DeFiLlama, Token Terminal, McKinsey, AMBCrypto) Read more AI-generated news on: undefined/news