Stablecoins surpass Visa and Mastercard with $27.6 trillion transfer volume in 2024

1 day ago

According to a report from crypto speech CEX.IO, stablecoin transfers reached $27.6 trillion successful 2024, outpacing Visa and Mastercard’s combined transaction measurement by 7.68%.

The study pointed retired that stablecoins consistently outperformed accepted outgo providers passim the twelvemonth contempt a dip successful Q3 owed to broader marketplace slowdowns.

This inclination signals a shift successful planetary remittances arsenic bequest providers similar Western Union and MoneyGram conflict to accommodate to a rising request for integer assets.

The stablecoin proviso expanded by 59% during this period, exceeding $200 billion. This maturation pushed stablecoins to correspond 1% of the full US dollar supply, a important summation from 0.63% astatine the commencement of the year.

USDC leads arsenic Solana gains dominance

Circle’s USDC emerged arsenic the ascendant stablecoin for on-chain transactions, accounting for 70% of full transportation volume. However, its power weakened somewhat successful Q3 owed to a impermanent diminution successful DeFi activity.

Tether’s USDT, the largest stablecoin by marketplace cap, experienced important growth, with its full transportation measurement much than doubling. Despite this, its marketplace stock declined from 43% to 25% past year.

Solana became the astir progressive blockchain for stablecoin transfers, overtaking Tron and Ethereum successful January 2024. The surge successful Solana-based enactment propelled USDC’s marketplace share, with 73% of the network’s stablecoin proviso tied to USDC transactions.

According to CEX.IO:

“This summation aligned with Solana’s wide ecosystem growth, arsenic stablecoins connected the web were predominantly utilized for DeFi and different dApp activities.”

Bots substance stablecoin volume

CEX.IO pointed retired that Bot-driven trading played a important relation successful stablecoin transactions past year, with automated systems liable for 70% of full volume.

According to the company’s research, bot-driven trades were peculiarly ascendant connected Ethereum, Base, and Solana.

The crypto speech reported that unadjusted transaction volumes—primarily reflecting bot activity—represented 77% of each stablecoin transfers successful 2024. This marked a fourfold summation from 2023, with Base adjacent overtaking Ethereum successful Q4 stablecoin measurement owed to the emergence of automated trading.

It continued that unadjusted transactions comprised implicit 98% of full stablecoin enactment successful networks wherever USDC dominates, specified arsenic Solana and Base.

This surge was fueled by these networks’ precocious transaction speeds, debased costs, booming DeFi ecosystem, and accelerated proliferation of meme tokens. In December alone, memecoins accounted for 56% of Solana’s decentralized speech (DEX) trading volume.

Despite concerns implicit bots manipulating markets done frontrunning and sandwich attacks, CEX.IO noted that they besides amended efficiency. These automated systems facilitate arbitrage, execute recurring astute declaration transactions, and assistance screen users’ state fees.

CEX.IO added:

“As a result, bot dominance successful stablecoin transactions could besides correspond the maturation of definite networks.”

What adjacent for stablecoins?

The speech said stablecoins cemented their relation arsenic indispensable liquidity sources successful DeFi, trading, and cross-border payments successful 2024. This inclination is expected to persist successful 2025, peculiarly successful post-halving cycles, which historically trigger accrued trading measurement and superior flows.

Supply enlargement is besides apt to continue. The institution noted that erstwhile marketplace cycles showed stablecoin maturation extends beyond bullish phases, often persisting adjacent successful aboriginal downturns. For instance, successful 2022, stablecoin proviso kept rising until March—five months aft the market’s peak. This suggests that request could stay dependable adjacent if broader marketplace conditions weaken.

Another cardinal improvement could impact a displacement beyond USDT-dominated networks similar Tron. The study noted that USDT faces increasing contention and increased regulatory scrutiny, which could erode its marketplace stock and interaction Tron’s dominance successful stablecoin transactions.

Meanwhile, Ethereum’s upcoming Pectra update, expected successful March 2025, could fortify the network’s entreaty arsenic a stablecoin hub. The upgrade aims to amended scalability, trim state fees, and heighten idiosyncratic acquisition crossed Ethereum Layer 1 and Layer 2 networks.

The station Stablecoins surpass Visa and Mastercard with $27.6 trillion transportation measurement successful 2024 appeared archetypal connected CryptoSlate.

View source