In a significant milestone, the volume of stablecoin transactions has surpassed the total global transaction volume of Visa for the first time in 2024. A new report from Bitwise shows that stablecoins processed nearly $14 trillion in transactions last year, exceeding Visa's figure of $13 trillion. This marks a major shift in the global payment system.
What drives the growth of Stablecoin?
This record volume follows rapid growth, with stablecoin transactions doubling from around 7 trillion dollars just a year ago. Stablecoins like Tether's USDT and Circle's USDC provide price stability unlike more volatile cryptocurrencies such as Bitcoin or Ethereum.
This stability, combined with low costs and high speed, makes stablecoins suitable for cross-border payments – a key growth area. They are proving particularly useful in regions with volatile local currencies, such as some areas in Latin America and Africa.
Large financial institutions are also showing increasing interest, driving the growth of the market. Renowned companies such as PayPal, Fidelity, and Bank of America are currently exploring or actively utilizing stablecoins.
In addition, policymakers are currently considering stablecoins through two important bills in the United States, the GENIUS Act and the STABLE Act, both of which are being actively reviewed by Congress.
What is the role of Ethereum?
Most of the activity of this stablecoin takes place on the Ethereum network. Although Ethereum itself has faced challenges regarding high fees and scalability, it remains a crucial backbone for these dollar-pegged digital assets.
Layer 2 scaling solutions like Arbitrum, Optimism, and Base are helping Ethereum handle this volume. These L2s, operating with the core infrastructure of Ethereum, enable efficient and affordable stablecoin transactions on the network.
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Stablecoin Processed 14 Trillion USD in 2024, Surpassing Visa: Bitwise Data
In a significant milestone, the volume of stablecoin transactions has surpassed the total global transaction volume of Visa for the first time in 2024. A new report from Bitwise shows that stablecoins processed nearly $14 trillion in transactions last year, exceeding Visa's figure of $13 trillion. This marks a major shift in the global payment system. What drives the growth of Stablecoin? This record volume follows rapid growth, with stablecoin transactions doubling from around 7 trillion dollars just a year ago. Stablecoins like Tether's USDT and Circle's USDC provide price stability unlike more volatile cryptocurrencies such as Bitcoin or Ethereum.
This stability, combined with low costs and high speed, makes stablecoins suitable for cross-border payments – a key growth area. They are proving particularly useful in regions with volatile local currencies, such as some areas in Latin America and Africa. Large financial institutions are also showing increasing interest, driving the growth of the market. Renowned companies such as PayPal, Fidelity, and Bank of America are currently exploring or actively utilizing stablecoins. In addition, policymakers are currently considering stablecoins through two important bills in the United States, the GENIUS Act and the STABLE Act, both of which are being actively reviewed by Congress. What is the role of Ethereum? Most of the activity of this stablecoin takes place on the Ethereum network. Although Ethereum itself has faced challenges regarding high fees and scalability, it remains a crucial backbone for these dollar-pegged digital assets. Layer 2 scaling solutions like Arbitrum, Optimism, and Base are helping Ethereum handle this volume. These L2s, operating with the core infrastructure of Ethereum, enable efficient and affordable stablecoin transactions on the network.