Stablecoin Transfer Volume Spikes 16-Fold in the Past 4 Years

The volume of stablecoin transfers has spiked more than 16-fold in four years, pointing to a significant increase in the general adoption of digital assets. According to data from on-chain data platform Token Terminal, the monthly stablecoin transfer volume hit a record high of $1.68 billion in April. The new high is a 1,580% increase from the $100 billion recorded in October 2020. Metrics Indicate Significant Stablecoin GrowthStakeholders and analysts in the crypto industry use stablecoin stats to measure growth and adoption in the cryptocurrency sector. This is because these digital assets function as a bridge connecting the crypto industry with the traditional finance space. Many people, especially in developing countries, convert fiat currencies to stablecoins to preserve value via the crypto sector. Merchants and service providers also use stablecoins in addition to popular assets like Bitcoin (BTC) and Ether (ETH). For instance, bettors and casino lovers can find online gambling platforms that allow users to play games using stablecoins like Tether's USDT. Some of these crypto platforms are no KYC casinos that protect users by skipping personal information, only requiring an email address for full access (source: https://99bitcoins.com/best-bitcoin-casino/no-kyc-casinos/). Payment processing giant Visa also corroborates the growth in stablecoin usage. The Visa Onchain Analytics Dashboard, developed with Allium Labs, shows that the total transaction volume in the last 30 days hit $3 trillion, with more than 359 million transactions and over 31 million monthly active users (MAU). The dashboard also shows that in October 2020, the average supply of stablecoins USDT and USDC, were $14.96 billion and $2.78 billion, respectively, adding up to $17.74 billion. These numbers have grown to $114.32 billion and $32.36 billion, a total of $146.68 billion, or a 727% increase from the October 2020 sum. More Stablecoins in the Crypto MarketTether's USDT is the world's largest stablecoin and the third-largest crypto asset, according to CoinMarketCap data. The data also shows that USDC is the world's second-largest stablecoin, and the sixth-largest crypto asset overall. While these two have maintained the top two positions in the stablecoin market for a long time, several competitors are in the market to compete with the big two. While there already is a handful of active stablecoins, including Dai (DAI), Pax Dollar (USDP), Gemini Dollar (GUSD), and TrueUSD (TUSD), more are joining the industry. Multinational fintech PayPal launched its PYUSD stablecoin last August, backed by USD deposits, short-term US treasuries, and other cash equivalents. Blockchain service provider Ripple also introduced its Ripple USD (RLUSD) stablecoin expected later this year, announcing support on the XRP Ledger and Ethereum blockchains. The state of Wyoming is also reportedly minting a new digital asset it calls the Wyoming Stable Token (WYST). The state intends to begin circulating the WYST token sometime this year but has not chosen a launch date. Also, Japanese financial services giant Nomura is joining forces with internet infrastructure company GMO Internet to develop dollar- and yen-backed stablecoins in Japan. The proliferation of stablecoins benefits businesses like crypto gambling sites, which are interested in gradually integrating digital assets into their operations. However, Visa and Allium Labs recently revealed a startling amount of bot activity in stablecoin transactions. According to the Visa and Allium dashboard, less than 10% of stablecoin transactions in April 2024 were from "organic payments activity." Of the $2.2 trillion recorded in the month, only $149 billion were not traceable to bots. This is sponsored content.