Over 400 million crypto wallets have positive balances as the bull market continues to heat up, according to Chainalysis. The current rally is attracting institutional and retail users to crypto, particularly those transacting in dollar-pegged stablecoins.
According to a Dec. 5 report, the rise in wallets with a non-zero balance represents a clear trend that crypto adoption is steadily increasing, despite wallet addresses not necessarily indicating the number of people using a blockchain.
“It is clear that we’re experiencing a seismic shift in both perception and usage,” the Chainalysis team wrote.
Researchers for the onchain analysis firm also said the increased adoption during this market cycle was characterized by a “convergence” of the digital economy and traditional financial institutions entering the space via exchange-traded funds (ETFs) and related products.
Number of wallets with a non-zero balance. Source: Chainalysis
Related: New Chainalysis CEO expects greater clarity on stablecoins in 2025
Onchain transaction activity is dominated by stablecoins
The Chainalysis report highlighted the dominance of stablecoins in onchain transactions. According to the report, stablecoins represented between 50% to 75% of all onchain transactions since the start of 2024.
Stablecoins are typically thought of as fiat on-ramps and off-ramps for the crypto markets. However, a previous report from Chainalysis revealed that stablecoins are quickly growing as a store of value among individuals in emerging economies.
In Venezuela and much of Latin America, US dollar stablecoins are increasingly used for remittances and access to liquidity in jurisdictions without access to the currency or that have tight capital controls.
Stablecoin share of transaction volume in 2024. Source: Chainalysis
The utility of stablecoins was also noted by US Federal Reserve Governor Christopher Waller in an Oct. 18 speech at the Institute of Advanced Studies.
Waller told the audience that stablecoins could benefit the existing financial system by reducing the costs of cross-border settlement.
The US Treasury’s Borrowing Advisory Committee echoed a similar sentiment in an Oct. 30 report. The committee highlighted how dollar-pegged stablecoins boost demand for Treasury bills and could enhance the operational efficiency of issuing Treasury assets.
Paxos CEO Charles Cascarilla also penned a letter to US lawmakers on Oct. 29 arguing that stablecoins were essential for the dollar’s future and a way to maintain its relevance in the digital economy.
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