The rise in stablecoin usage could be a sign of growing cryptocurrency adoption for a maturing industry. Stablecoin transfers have increased more than 16-fold in the last four years, being highlighted as a promising metric of mass cryptocurrency adoption.
Monthly stablecoin transfer volume reached a record $1.68 trillion in April, compared to $100 billion in October 2020, representing a more than 16-fold increase, according to data from Token Terminal.
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 investor conviction. An increase in the market value of stablecoins is often associated with growing investor conviction, signaling the inflow of more capital.
The cumulative market capitalization of all stablecoins stands at more than $162 billion, up more than 24% year-to-date (YTD) compared to $130 billion on January 1, according to DefiLlama .
The growing use of stablecoins is also highlighted by the increase in the active user base.
There were more than 31.1 million monthly active stablecoin users who performed more than 353 million transactions in the last 30 days, according to Visa's stablecoin dashboard
.The growing use of stablecoins is a promising sign of growing adoption and a maturing crypto industry, according to Kilian Peter Krings, CEO of Stabble, a Solana-based liquidity and trading layer.
RWA sector drives 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, according to data from Token Terminal.
The growing flows of stablecoins reflect broader confidence in their expanding use cases, according to Sami Start, co-founder and CEO of Transak.
