Stablecoin transfers have been on the rise, surpassing traditional payment providers like Visa and Mastercard in 2024. According to a report from CEX.IO, stablecoin transfers reached $27.6 trillion, outpacing Visa and Mastercard’s combined transaction volume by 7.68%. This trend signifies a shift in global remittances, as legacy providers struggle to keep up with the rising demand for digital assets.
The report highlighted that stablecoins consistently outperformed traditional payment providers throughout the year, despite a slight dip in Q3 due to broader market slowdowns. The stablecoin supply expanded by 59% during this period, exceeding $200 billion. This growth pushed stablecoins to represent 1% of the total US dollar supply, a significant increase from 0.63% at the beginning of the year.
USDC emerged as the dominant stablecoin for on-chain transactions, accounting for 70% of total transfer volume. However, its influence slightly weakened in Q3 due to a temporary decline in DeFi activity. Tether’s USDT, the largest stablecoin by market cap, experienced substantial growth, with its total transfer volume more than doubling. Despite this, its market share declined from 43% to 25% last year.
Solana emerged as the most active blockchain for stablecoin transfers, overtaking Tron and Ethereum in January 2024. The surge in Solana-based activity propelled USDC’s market share, with 73% of the network’s stablecoin supply tied to USDC transactions. This increase aligned with Solana’s overall ecosystem growth, as stablecoins on the network were predominantly used for DeFi and other dApp activities.
Bot-driven trading played a significant role in stablecoin transactions in 2024, with automated systems responsible for 70% of total volume. Bot-driven trades were particularly dominant on Ethereum, Base, and Solana. Unadjusted transaction volumes, primarily reflecting bot activity, represented 77% of all stablecoin transfers in 2024, marking a fourfold increase from 2023.
Despite concerns over bots manipulating markets, CEX.IO noted that they also improve efficiency by facilitating arbitrage, executing recurring smart contract transactions, and covering users’ gas fees. Stablecoins cemented their role as essential liquidity sources in DeFi, trading, and cross-border payments in 2024, a trend expected to persist in 2025.
Supply expansion is also likely to continue, as stablecoin growth extends beyond bullish phases, often persisting even in early downturns. Ethereum’s upcoming Pectra update in March 2025 could strengthen the network’s appeal as a stablecoin hub, aiming to improve scalability, reduce gas fees, and enhance user experience across Ethereum Layer 1 and Layer 2 networks.
Overall, stablecoins are expected to play a crucial role in the crypto ecosystem, with potential shifts in dominance among different networks and continued growth in supply and usage.