NAIROBI (CoinChapter.com)— Stablecoins recorded higher transaction volumes than Visa and Mastercard combined in 2024, reflecting their growing dominance in the global financial ecosystem. According to a Jan. 31 report by crypto exchange CEX.io, stablecoin transfer volume reached $27.6 trillion, surpassing the combined volumes of Visa and Mastercard by 7.7%.
Stablecoins Expand Despite Market Share Decline
Stablecoin supply surged by 59% in 2024, representing 1% of the U.S. dollar supply. However, despite higher volumes, stablecoins lost 13.5% in their total market capitalization share, primarily due to declining activity in the broader crypto market during Q3 2024.
CEX.io’s lead analyst Illia Otychenko noted that stablecoin adoption soared following post-election spikes in crypto activity, pushing their transaction volumes over two to three times higher than Visa and Mastercard in Q4 alone.
Tether’s USDT remained dominant, accounting for 79.7% of total stablecoin trading volume. Increased reserves on centralized exchanges further strengthened its position as the leading stablecoin. The rise of stablecoin usage for savings and remittances also contributed to the surge, but its primary role continues to be within crypto trading and decentralized finance (DeFi).
Bots Drive Stablecoin Transactions on Solana and Base
Automated trading bots played a significant role in boosting stablecoin transactions. CEX.io estimates that 70% of total transfer volume was driven by bot activity. On Solana and Base, this percentage surged to 98%. Otychenko emphasized that while bot transactions could include harmful practices like frontrunning and pump-and-dump schemes, they also contribute to market efficiency through arbitrage trading and gas fee coverage by paymasters.
Despite concerns over manipulation, bot-driven stablecoin transfers highlight the maturation of certain blockchain networks, particularly in their role as liquidity providers in DeFi. Stablecoins’ deep integration into automated trading suggests that their dominance in digital transactions will likely persist.
Ethereum and Tron Maintain Lead as New Networks Gain Ground
Ethereum and Tron remained the top networks for stablecoin transactions. The two networks accounted for over 83% of the market by the end of 2024. However, their combined market share declined from 90% at the start of the year. This indicates a shift toward emerging networks such as Solana, Arbitrum, Base, and Aptos.
Tron’s market share notably dropped from 38% to 29%, reflecting broader changes in stablecoin distribution. In contrast, Ethereum’s stablecoin market capitalization surged by 65% to a new all-time high. Analysts attributed this growth to lower transaction fees following the Dencun upgrade in March and increased optimism post-U.S. elections.
The surpassing of Visa and Mastercard in transaction volume underscores stablecoins’ increasing influence in global finance. Their expanding use in DeFi and automated trading continues to drive adoption, despite market fluctuations. With blockchain networks diversifying and transaction efficiencies improving, stablecoins are likely to remain at the forefront of digital payments and financial services in the years ahead.
