According to CryptoPotato, data from Token Terminal reveals that the monthly stablecoin transfer volume soared to over $1.68 trillion in April, a significant leap from the $100 billion recorded in October 2020. This 16-fold increase underscores the potential of stablecoins in streamlining financial processes and enabling cross-border transfers.
Token Terminal's data showed a record-breaking performance in stablecoin transfer volumes, with average monthly volumes escalating from $100 billion four years ago to $1 trillion recently. This analysis encompassed stablecoins from major issuers such as Tether, Frax Finance, Circle, Paxos, MakerDAO, Liquity Protocol, Athena Labs, Angle Protocol, Aave, Monerium, and others. Visa’s network, used as a benchmark in Token Terminal’s data, also reported significant spikes in stablecoin activity, with over 31.2 million users conducting more than 350 million transactions, resulting in a transaction volume of $2.7 trillion in the last 30-day period. However, despite the substantial and largely positive stats reported in April, the monthly transfer volumes slightly dipped in May 2024.
Further data indicates that as of June, the combined market value of all stablecoins is now more than $162 billion, a 24% increase from $130 billion in early January 2024. Ethereum-based stablecoins dominate the market, holding over 49.49% of the market share. As stablecoin transfer volumes surged in April, those based on Ethereum led the market, with DAI reporting volumes of $636 billion. This represents a significant increase, with April’s DAI volumes being over three times higher than in March.
The recent surge in stablecoin volumes indicates a growing interest in this asset class. Analysts highlight the role of stablecoins in facilitating various financial services, particularly cross-border transfers. Circle CEO Jeremy Allaire predicts that stablecoins could constitute 10% of global economic money within the next decade. He anticipates that by the end of 2025, they will be recognized as legal electronic money in most major jurisdictions. Earlier this year, JPMorgan analyst Nikolaos Panigirtzoglou commented on the substantial growth of the stablecoin market, emphasizing their role in bridging traditional finance to the crypto ecosystem. He noted that stablecoins, functioning as the equivalent of cash within the crypto space, serve both as a lubricant and a significant source of collateral. Panigirtzoglou suggested that this growth signals even more promising prospects for the stablecoin market, solidifying their position as the primary bridge between traditional finance and blockchain.