Stablecoins had a record-breaking year in 2024, handling more transaction volume than Visa and Mastercard combined.
According to a report by cryptocurrency exchange CEX.IO, stablecoin transfers reached a total of $27.6 trillion last year.
This was 7.68% higher than the combined transaction volume of the two largest traditional payment providers.
Even though the crypto market slowed down in the third quarter, stablecoins remained strong. Their supply grew by 59%, reaching over $200 billion.
This means stablecoins now represent 1% of the total US dollar supply, up from 0.63% at the beginning of the year.
As more people and businesses turn to digital assets, stablecoins continue to play a crucial role in global payments and decentralised finance (DeFi).
USDC and USDT lead the stablecoin market
Among all stablecoins, USD Coin ($USDC) processed the highest number of transactions in 2024, making up 70% of the total volume. However, it lost some ground in the third quarter due to a brief slowdown in DeFi activity.
Tether’s $USDT, which is the largest stablecoin by market cap, also experienced major growth. Its total transaction volume more than doubled, yet its market share fell from 43% to 25%. This shift highlights growing competition among stablecoins.
A major development in 2024 was Solana ($SOL) overtaking Ethereum ($ETH) and Tron ($TRX) as the most active blockchain for stablecoin transactions.
The increase in activity on Solana boosted $USDC’s presence, with 73% of the network’s stablecoin supply being tied to $USDC transactions. According to CEX.IO:
“This increase aligned with Solana’s overall ecosystem growth, as stablecoins on the network were predominantly used for DeFi and other dApp activities.”
Stablecoins are now essential for trading, lending, and cross-border payments. Experts believe their usage will continue growing in 2025, especially as the crypto market sees more activity after Bitcoin’s next halving event.
Bots driving up transactions
One of the biggest factors behind the rise in stablecoin transactions is automated trading. CEX.IO’s report found that bots accounted for 70% of all stablecoin transfers in 2024.
On networks like Ethereum, Solana, and Base, automated systems were even more dominant. In some cases, bots were responsible for up to 98% of stablecoin transactions. This represents a major shift from 2023 when bot-driven trades were far lower.
In the fourth quarter, Base surpassed Ethereum in total stablecoin volume. This was largely due to the growing influence of automated trading.
While some worry that bots can manipulate markets through unfair trading strategies, they also provide benefits. Automated systems help stabilise prices, perform arbitrage, and execute smart contract transactions. CEX.IO noted:
“As a result, bot dominance in stablecoin transactions could also represent the maturation of certain networks.”
Another factor driving bot activity was the rise of meme coins. On Solana, for example, memecoins accounted for 56% of all decentralised exchange (DEX) trading in December 2024.
Many of these trades were executed by bots, further increasing stablecoin transaction volume.
What’s next for stablecoins?
Stablecoin supply is expected to keep growing in 2025. Previous trends suggest that even if the overall crypto market slows down, stablecoins will continue expanding.
For example, in 2022, stablecoin supply kept increasing for five months after the crypto market peaked.
However, $USDT’s dominance may face challenges. Tether’s stablecoin is under growing regulatory scrutiny, which could affect its market share.
As a result, alternative stablecoins may gain traction, and networks that depend on $USDT—such as Tron—could lose some of their influence.
Meanwhile, Ethereum is set to release its Pectra upgrade in March 2025. This update is expected to improve network efficiency, lower transaction fees, and enhance the overall user experience.
Many believe these improvements will make Ethereum a stronger hub for stablecoin transactions.
CEX.IO’s lead analyst, Illia Otychenko, commented on the evolving stablecoin market:
“Stablecoins experienced a surge in both supply and volume following the post-election spike in crypto activity, surpassing Visa and Mastercard by over two and three times, respectively, in Q4 alone.”
Analysts will be closely watching how regulatory changes and technological advancements shape stablecoins in the coming months.
The growing liquidity provided by stablecoins could boost the entire crypto market, potentially leading to new all-time highs for digital assets like Bitcoin.
The rise of stablecoins in 2024 marks a turning point in digital payments. With transaction volumes exceeding those of Visa and Mastercard, stablecoins have proven their importance in global finance.
While challenges remain—such as regulatory scrutiny and market fluctuations—their role in crypto trading, DeFi, and cross-border payments is undeniable.
