Transfer stablecoin has increased more than 16-fold in the past four years, which is being highlighted as a promising measure of mass crypto adoption.
Monthly stablecoin transfer volume increased from $100 billion in October 2020 to a record $1.68 trillion in April this year.
Stablecoins represent a major bridge between the traditional financial system and the digital asset space. Stablecoin movements are often used to gauge the health of the cryptocurrency market and investor confidence.
Stablecoin transfer volume. Source: Token Terminal
Rising stablecoin market capitalizations are often associated with growing investor confidence, signaling more capital flowing into the market.
The cumulative market capitalization of all stablecoins sits at over $162 billion, up over 24% YTD from $130 billion on January 1.
Total stablecoin market capitalization. Source: DefiLlama
Over 31 million monthly stablecoin users: Visa
The growing adoption of stablecoins is also highlighted by a growing active user base.
According to Visa’s stablecoin dashboard, there are more than 31.1 million monthly active stablecoin users and more than 353 million transactions in the past 30 days.
Key stablecoin metrics. Source: Visa
Kilian Peter Krings, CEO of Stabble, a trading and liquidity layer on Solana, said the growing use of stablecoins is a promising sign of growing adoption and a maturing crypto industry .
“Stablecoins are the best tool to securely store value, providing stability to individuals or crypto companies when managing investment portfolios. This means that stablecoins help reduce risk and thus enable wider cryptocurrency adoption as users fear less volatility.”
RWA sector increases stablecoin transfer volume to $1 trillion in March
Cumulative stablecoin transfer volume surpassed the $1 trillion mark for the first time in March 2024, reaching a total of $1.27 trillion across all stablecoin issuers.
Stablecoin transfer volume, monthly chart. Source: Token Terminal
According to Transak co-founder and CEO Sami Start, the growing steady cash flow reflects broader confidence in their expanding use cases.
The growing integration around tokenized real-world assets (RWA) is a significant driver of stablecoin growth:
“People are now using stablecoins to buy assets, secure loans and facilitate cross-border transactions; democratize access to wealth, allowing anyone, anywhere, to participate in global financial markets. The extension of stablecoins demonstrates their potential to advance economic inclusion and reshape traditional finance.”
Itadori
According to Cointelegraph
