Here’s How Much Stablecoin Transfer Volume Has Increased Over the Past 4 Years

According to Token Terminal data, monthly stablecoin transfer volume rose to over $1.68 trillion in April, representing a significant increase from the $100 billion recorded in October 2020.

This 16-fold increase highlights the potential of stablecoins in enhancing financial operations and facilitating cross-border transfers.

Record-breaking stablecoin volumes

In a recent post on X, Token Terminal subscriber Data indicates record performance in stablecoin transfer volumes. Average monthly trading volume has risen from $100 billion four years ago to $1 trillion recently.

this analysis Includes stablecoins from major issuers like Tether, Frax Finance, Circle, Paxos, MakerDAO, Liquity Protocol, Athena Labs, Angle Protocol, Aave, Monerium, and more.

The Visa Network, cited as a standard in the Token Terminal on X post, also tracks its data. He. She mentioned Significant spikes in stablecoin activity, with over 31.2 million users observed conducting over 350 million transactions, resulting in a transaction volume of $2.7 trillion in the past 30-day period.

However, despite the impressive and largely positive statistics reported in April, monthly transfer volumes declined slightly in May 2024.

More data indicates that as of June, the combined market capitalization of all stablecoins is now over $162 billion, up 24% from $130 billion in early January 2024.

Ethereum-based stablecoins dominate the market, holding more than 49.49% of the market share. As stablecoin transfer volumes rose in April, those based on Ethereum led the market, with DAI reporting $636 billion in transfer volume. This represents a significant increase, with DAI trading volumes for April more than three times what they were in March.

Growing interest: a paradigm shift

The recent rise in stablecoin volumes indicates a growing interest in this asset class. Analysts emphasize the role of stablecoins in facilitating various financial services, especially cross-border transfers.

Jeremy Allaire, CEO of Circle, expects stablecoins to make up 10% of global economic money over the next decade. It is expected that by the end of 2025, it will be recognized as legal electronic money in most major jurisdictions.

Earlier this year, JP Morgan analyst Nikolaos Panigirzoglou commented on the significant growth of the stablecoin market, highlighting its role in connecting traditional finance to the cryptocurrency ecosystem. he male Stablecoins, which act as the equivalent of cash in the cryptocurrency space, act as a lubricant and an important source of collateral.

Panigirzoglou suggested that this growth indicates more promising prospects for the stablecoin market, strengthening its position as a key bridge between traditional finance and blockchain.