Stablecoin transfers have increased more than 16-fold over the past four years, which is being highlighted as a promising metric of mass cryptocurrency adoption.
The monthly stablecoin transfer volume rose to a record high of $1.68 trillion in April, up from $100 billion in October 2020, which represents an over 16-fold increase, according to Token Terminal data.
Stablecoins represent the main bridge between the traditional financial system and the digital asset space. Stablecoin movements are often used to gauge the health of the crypto market and the conviction of investors.
A rising stablecoin market cap is usually associated with growing investor conviction, signaling more incoming capital.
The cumulative market capitalization of all stablecoins sits at over $162 billion, up over 24% year-to-date (YTD) from $130 billion on Jan. 1, according to DefiLlama.
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Over 31 million monthly stablecoin users: Visa
The growing use of stablecoins is also highlighted by the growing active user base.
There were over 31.1 million total monthly active stablecoin users that made over 353 million transactions over the past 30 days, according to Visa’s stablecoin dashboard.
The growing stablecoin usage is a promising sign of growing adoption and a maturing crypto industry, according to Kilian Peter Krings, the CEO of Stabble, a Solana-based liquidity and trading layer.
Krings told Cointelegraph:
“Stablecoins are the best tool to store value safely, which delivers stability to either individuals or also crypto firms when it comes to portfolio management. This means that stablecoins help risk mitigating and therefore make a broader crypto adoption possible as users fear less volatility.”
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RWA sector boosts stablecoin transfer volume to $1 trillion in March
Cumulative stablecoin transfer volume first breached the $1 trillion mark in March 2024, reaching a total of $1.27 trillion across all stablecoin issuers, according to Token Terminal data.
The growing stablecoin flows reflect a wider trust in their expanding use cases, according to Sami Start, the co-founder and CEO of Transak.
The rising integrations around tokenized real-world assets (RWAs) are a significant driver of the stablecoin growth, Start told Cointelegraph:
“People are now using stablecoins to purchase properties, secure loans and facilitate borderless transactions. This democratizes access to wealth, allowing anyone, anywhere, to participate in global financial markets. The expanding utility of stablecoins showcases their potential to enhance economic inclusivity and reshape traditional finance.”
Tether, the issuer of the world’s largest stablecoin, Tether (USDT), accounted for the lion’s share of March’s $1 trillion trading volume, or $716 billion.
Circle, the issuer of the second-largest stablecoin, USD Coin (USDC), came in second place with $358 billion.