Here is the amount of Stablecoin transfer volume that has increased over the past 4 years

According to data from Token Terminal, monthly stablecoin transfer volume increased to more than $1.68 trillion in April, marking a significant increase from the $100 billion recorded in October 2020.

This 16-fold increase highlights the potential of stablecoins to improve financial processes and facilitate cross-border transfers.

Stablecoin volumes that broke records

In a recent post on X, Token Terminal shared data indicating record-breaking performance in stablecoin transfer volumes. Average monthly volumes have risen from $100 billion four years ago to $1 trillion recently.

This analysis included stablecoins from major issuers such as Tether, Frax Finance, Circle, Paxos, MakerDAO, Liquity Protocol, Athena Labs, Angle Protocol, Aave, Monerium and more.

The Visa network, referenced in the Token Terminal post on X, also tracks your data. It reported significant spikes in stablecoin activity, noting more than 31.2 million users made more than 350 million transactions, resulting in a transaction volume of 2.7 trillion dollars in the last 30 days.

However, despite the massive and largely positive statistics reported in April, monthly transfer volumes fell slightly in May 2024.

More data indicates that as of June, the combined market value of all stablecoins is now more than $162 billion, up 24% from $130 billion at the start of January 2024.

Ethereum-based stablecoins dominate the market, with more than 49.49% of the market share. As stablecoin transfer volumes increased in April, Ethereum-based ones led the market, with DAI information volumes of $636 billion. This represents a significant increase, as April’s DAI volumes are more than three times higher than March’s.

Growing interest: a paradigm shift

The recent increase in stablecoin volumes indicates growing interest in this asset class. Analysts highlight the role of stablecoins in facilitating various financial services, especially cross-border transfers.

Circle CEO Jeremy Allaire predicts that stablecoins could make up 10% of the world’s economic money over the next decade. It predicts that by the end of 2025 they will be recognized as legal tender in most major jurisdictions.

Earlier this year, JPMorgan analyst Nikolaos Panigirtzoglou commented on the substantial growth of the stablecoin market, highlighting its role in bridging traditional finance with the crypto ecosystem. He noted that stablecoins, which function as the equivalent of cash within the crypto space, serve as both lubricant and an important source of collateral.

Panigirtzoglou suggested that this growth indicates even more promising prospects for the stablecoin market, cementing its position as the primary bridge between traditional finance and blockchain.

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