USDT Dominates Stablecoin Flows as Arbitrum Surpasses Ethereum in Layer-2 Adoption

In a significant shift within the cryptocurrency ecosystem, Arbitrum, Ethereum’s layer-2 scaling solution, has outpaced Ethereum in stablecoin inflows, attracting $381 million over the past week. This development highlights the growing preference for layer-2 networks, which offer faster and more cost-effective transactions compared to the Ethereum mainnet. Meanwhile, Ethereum experienced a notable outflow of $374 million, underscoring the competitive landscape as users seek alternatives with lower fees. The trend reflects broader adoption of layer-2 solutions like Arbitrum, which are increasingly becoming the go-to platforms for stablecoin transactions, particularly USDT. As of June 2025, this shift signals a pivotal moment for scalability in decentralized finance (DeFi), with layer-2 networks poised to play a central role in the future of digital asset transactions.

Arbitrum Outshines Ethereum in Stablecoin Inflows as Layer-2 Networks Gain Traction

Arbitrum, Ethereum’s layer-2 scaling solution, has emerged as the dominant force in stablecoin inflows, attracting $381 million over the past week. Meanwhile, ethereum itself experienced a significant outflow of $374 million, signaling a shift in user preference toward faster and more cost-effective alternatives.

The trend underscores growing demand for layer-2 networks that offer reduced transaction fees and improved efficiency. TRON also capitalized on this movement, drawing $102 million in stablecoin inflows, further cementing its position as a leader in USDT supply—particularly in Asian markets where stablecoin payments thrive.

Solana, however, faced headwinds with $239 million in outflows, likely due to cooling interest in memecoins. The data suggests a broader market rotation toward layer-2 solutions, raising questions about a potential liquidity ’flippening’ where Ethereum’s scaling networks could eventually surpass the mainchain in activity.

Tether Leads Series A Funding Round for Chilean Crypto Exchange Orionx

Tether, the issuer of the world’s largest stablecoin USDT, has made a strategic investment in Orionx, a Chile-based cryptocurrency exchange and digital assets infrastructure provider. The move underscores Tether’s aggressive expansion into Latin America’s burgeoning crypto market.

The investment, announced June 3, 2025, anchors Orionx’s Series A funding round. The Chilean platform operates across multiple LATAM markets including Peru, Mexico and Colombia, specializing in crypto-powered cross-border payments. Fresh capital will fuel regional expansion and stablecoin infrastructure development targeting remittances, treasury services, and payment solutions.

"This investment aligns with our mission to bring stablecoin-powered financial tools to underserved populations," said Tether CEO Paolo Ardoino. The deal comes as LATAM users received $415 billion in crypto transactions between July 2023-June 2024, highlighting the region’s rapid adoption.

U.S. Stablecoin Legislation Nears Final Vote Amid House-Senate Differences

Congress is nearing a pivotal moment for cryptocurrency regulation as the Senate prepares to vote on stablecoin legislation. Representative French Hill highlighted key divergences between Senate and House versions that must be resolved before enactment. Both chambers agree on Core principles but clash on international reciprocity requirements for foreign issuers like Tether’s USDT.

The House bill imposes stricter oversight of offshore stablecoin operators seeking U.S. market access. "You either register domestically or operate from a jurisdiction with equivalent regulation," Hill stated at an Atlantic Council event. This provision reflects growing concerns about dollar-pegged tokens circulating outside traditional banking supervision.

While the House Financial Services Committee advanced its version with bipartisan support, critical details remain unresolved. The legislation represents Washington’s most substantive attempt to create guardrails for the $160 billion stablecoin market since TerraUSD’s collapse. Market participants await clarity on whether final language will favor the House’s rigorous approach or the Senate’s potentially more flexible framework.