The recent memecoin craze has had a ripple effect on Ethereum's on-chain stablecoin trading, with trading volume for USDC on track to be the lowest since December 2020. The Block's data shows that USDC trading has only reached $73.1 billion this month, less than half of April's $158.9 billion.

Tether's USDT has also seen a decline in volume, with $69 billion changing hands so far this month compared to $110.6 billion in April. The decrease in stablecoin activity is likely due to high fees on Ethereum and the focus on memecoins.