Ethereum holds 55% of stablecoins, yet ETH trades below $2.4K – Justified?

Ethereum [ETH] has been the focus of attention in the stablecoin space lately. According to data from Dune Analytics, Ethereum manages roughly $190 billion of the approximately $322 billion stablecoin market. This indicates that about 55% of all stablecoins are held by Ethereum. Additionally, only $60 billion is handled by all other blockchains combined, compared to roughly $90 billion handled by TRON [TRX].  In fact, the entire supply nearly doubled in just 24 months, and Ethereum's market share held steady. Remarking on the same, Leon Waidmann—Head of Research at Lisk—noted,  Stablecoins picked their settlement layer a long time ago. ETH price action raises eyebrows This coincided with Ethereum [ETH] trading around $2,116.40 after a drop of 4.4% in the past 24 hours. Needless to say, this is startling, though, because since February 2026, ETH has been trading below $2445. Even with these sideways and stagnant moves, ETH continues to rule the stablecoin market.  Factors behind ETH dominating the stablecoin space  This may be due to a number of factors. For example, when a company like Circle, Fidelity, or BlackRock transfers $50 million, they don't care if the gas fee is $5.00 or $0.05. Unchangeable security is what matters to them. Additionally, it is mathematically the most costly blockchain in the world to attack, with over 39.2 million ETH staked to secure the network. Even though a chain like Base or Solana [SOL] may handle millions of quick retail transactions every day, the real value that is parked there is not that great.  It's quite normal to believe that the network is losing traction when the price remains at $2,445 without any movement. However, the network's usefulness is not determined by the value of the ETH asset only. What's more?  Lastly, Ethereum's Layer 2 scaling roadmap (Arbitrum, Optimism, Base) is causing retail users to switch from the main Ethereum chain to L2s for their low-cost stablecoin trading. As a result, even though the Ethereum ecosystem as a whole is effectively gaining more market share than ever before, less fee income is going directly toward burning mainnet ETH. This, in turn, is what will keep the price low in the near term. Zooming out, if we look at the market capitalization of all stablecoins, we can see that they have increased to $323.112 billion, with USDT making up 58.69% of this total. Final Summary Ethereum dominates the stablecoin market by holding 55% of the total stablecoin supply. Staking ETH, fewer gas fees, and a few other factors are the reason behind why stablecoins are leaning on Ethereum and not other blockchains.