Stablecoin Transfer Volume Up 16x in 4 Years
19 Jun, 2024 ● Coin news
Stablecoin transfers have surged over 16 times in the past four years, highlighting a promising indicator of widespread cryptocurrency adoption.
According to Token Terminal data, the monthly stablecoin transfer volume hit a record high of $1.68 trillion in April, up from $100 billion in October 2020, marking an over 16-fold increase.
Stablecoins act as the primary bridge between the traditional financial system and the digital asset space.
Their movements are often used to assess the health of the crypto market and investor confidence.
An increasing stablecoin market cap is generally linked to growing investor conviction, signaling an influx of capital.
The combined market capitalization of all stablecoins is over $162 billion, reflecting a rise of more than 24% year-to-date (YTD) from $130 billion on Jan. 1, according to DefiLlama.
The expanding use of stablecoins is also evidenced by a growing active user base.
Visa’s stablecoin dashboard reports that over the past 30 days, there were more than 31.1 million total monthly active stablecoin users who executed over 353 million transactions.
According to Kilian Peter Krings, the CEO of Stabble, a Solana-based liquidity and trading layer, this increasing stablecoin usage signifies growing adoption and a maturing crypto industry.
Krings told Cointelegraph:
“Stablecoins are the best tool to store value safely, which delivers stability to either individuals or also crypto firms when it comes to portfolio management. This means that stablecoins help risk mitigating and therefore make a broader crypto adoption possible as users fear less volatility.”
Token Terminal data shows that cumulative stablecoin transfer volume first surpassed the $1 trillion mark in March 2024, reaching a total of $1.27 trillion across all stablecoin issuers.
Sami Start, the co-founder and CEO of Transak, noted that the growing stablecoin flows reflect broader trust in their expanding use cases. He told Cointelegraph:
“People are now using stablecoins to purchase properties, secure loans and facilitate borderless transactions. This democratizes access to wealth, allowing anyone, anywhere, to participate in global financial markets. The expanding utility of stablecoins showcases their potential to enhance economic inclusivity and reshape traditional finance.”
In March, Tether, the issuer of the world’s largest stablecoin, USDT, accounted for the majority of the $1 trillion trading volume, totaling $716 billion.
Circle, the issuer of the second-largest stablecoin, USD Coin, followed with $358 billion.
Sources:
https://cointelegraph.com/news/stablecoin-transfer-volume-16x-increase-4-years
https://x.com/tokenterminal/status/1803361645592281155/photo/1
https://defillama.com/stablecoins/chains
