Stablecoin transfer volume has seen a significant increase over the past four years, reaching over $1.68 trillion in April, compared to just $100 billion in October 2020. This surge, which represents a 16-fold rise, highlights the growing potential of stablecoins in revolutionizing financial processes and facilitating cross-border transfers.
Data shared by Token Terminal revealed that average monthly stablecoin volumes have jumped from $100 billion four years ago to $1 trillion recently. Major stablecoin issuers such as Tether, Frax Finance, Circle, Paxos, MakerDAO, and others have contributed to this growth.
Visa’s network, which serves as a benchmark for stablecoin activity, reported over 31.2 million users conducting more than 350 million transactions, resulting in a transaction volume of $2.7 trillion in the last 30 days. Despite the positive statistics reported in April, stablecoin transfer volumes experienced a slight dip in May 2024.
As of June, the combined market value of all stablecoins has exceeded $162 billion, marking a 24% increase from $130 billion in early January 2024. Ethereum-based stablecoins dominate the market, holding over 49.49% market share. DAI, an Ethereum-based stablecoin, reported volumes of $636 billion in April, showing significant growth compared to the previous month.
The surge in stablecoin volumes reflects a growing interest in this asset class. Analysts believe that stablecoins play a crucial role in facilitating various financial services, especially cross-border transfers. Circle CEO Jeremy Allaire predicts that stablecoins could represent 10% of global economic money within the next decade and become recognized as legal electronic money in major jurisdictions by the end of 2025.
JPMorgan analyst Nikolaos Panigirtzoglou commented on the substantial growth of the stablecoin market, emphasizing its role in connecting traditional finance with the crypto ecosystem. He sees stablecoins as a vital bridge between traditional finance and blockchain, serving as both a lubricant and a significant source of collateral.
Overall, the growth in stablecoin transfer volumes and market value signals promising prospects for the stablecoin market, solidifying its position as a key player in reshaping the financial landscape. As more individuals and institutions recognize the benefits of stablecoins, their adoption and usage are expected to continue growing in the coming years.