Forbes India 15th Anniversary Special

Stablecoin transfers have surged 16-fold in the past four years

The Circle CEO confidently predicts stablecoins will constitute 10 percent of the global financial system within the next decade

Shashank Bhardwaj
Published: Jun 20, 2024 03:31:24 PM IST

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The volume of stablecoin transfers has experienced a rapid and significant 16-fold upsurge over the past four years, denoting influential growth in the cryptocurrency sector. Stablecoins have become a vital bridge between traditional financial systems and the crypto domain. As more funds flow into stablecoins, a notably increased influx of capital will be entered into the crypto network.

In a remarkable feat, the monthly stablecoin transfer volume reached a record high of $1.68 trillion in April 2024, an astounding increase from just $100 billion in October 2020. These readings confirm the growing adoption and investor faith in the crypto market. The total market value of all stablecoins has surpassed $162 billion, marking a 24 percent increase since January 1, 2024.

Last month, Visa’s stablecoin dashboard revealed that over 31.1 million monthly active users made over 353 million stablecoin transactions. The actively growing user base indicates the growth of the stablecoin and the prevailing crypto market.

The co-founder and CEO of Transak, Sami Start, underscored the increasing use of stablecoins for property purchases, secure loans, and cross-border transactions. He further emphasized that this trend is not just about fostering wealth or enabling global market participation, but about fundamentally reshaping traditional financial paradigms. This is a clear indication of the transformative potential of stablecoins in the global financial system.

In March 2024, the cumulative transfer volume of stablecoins exceeded $1 trillion, reaching $1.27 trillion across all stablecoin providers in the market. This milestone signifies the increasing use of stablecoins for diverse purposes, especially for tokenised real-world assets (RWAs).

The CEO of Stabble – a Solana-based liquidity and trading layer, Kilian Peter Krings, mentioned the vital role of stablecoins in risk management and promoting more comprehensive crypto adoption. He added that stablecoins are a secure method for holding value and providing stability to investors and other crypto enterprises in asset management. By mitigating risks, stablecoin addresses the concerns of crypto market volatility and paves the way for better and broader adoption, integrating cryptocurrencies into mainstream economic practices.

Tether, the issuer of the world’s largest stablecoin (USDT), dominated March’s $1 trillion trading volume with $716 billion. The issuer of the second-largest stablecoin (USDC), Circle, followed by $358 billion in trading volume during the same period.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist.
Twitter: @bhardwajshash