The Rise of Binance Pay Illustrates a Paradigm Shift: Crypto Is on the Verge of Becoming a True Transactional Tool

The rise of Binance Pay goes beyond speculation and investments. Indeed, the concrete use of these assets as a means of payment has reached an unprecedented level, transforming the perception of the sector.

Binance Pay, Binance's crypto payment service, saw a massive surge in transaction volume, reaching an all-time high of $72.4 billion in 2024. This astronomical growth, up from $2.5 billion in 2021, showcases the increasing adoption of cryptocurrencies as a viable payment method, shifting the narrative away from mere speculation and investments.

The vast majority of these transactions were conducted using stablecoins, with USDT leading the way with an astonishing 80% share, amounting to $57 billion in transactions. Bitcoin followed with $6.6 billion, Ethereum with $2.4 billion, and BNB with $2.2 billion. Notably, USDC saw a rapid surge with a 1,338% increase in transactions and a 48% rise in volume over a year.

This remarkable growth in crypto payments can be attributed to several key factors. Merchants and consumers are showing greater trust in cryptocurrencies, thanks in part to the stability of stablecoins amidst the volatility of traditional cryptos. Additionally, Binance's infrastructure enables fast and low-cost transactions, making crypto payments a more attractive option.

Binance Pay's success is not limited to the platform itself but also reflects a broader transformation in the crypto market. Notably, the total number of crypto holders experienced a significant increase of 13% in 2024, reaching 659 million users worldwide. Bitcoin remained the most widely held asset, boasting 337 million holders, which constitutes about 51% of crypto investors.

Institutions also played a pivotal role in this dynamic. In the United States, an estimated 300,000 to 1.2 million new investors acquired BTC through spot ETFs, thanks to a favorable policy stance by President Donald Trump. Meanwhile, Ethereum also saw renewed interest, largely driven by developments in Layer 2 solutions and the launch of spot Ethereum ETFs, which stimulated investor participation.

The rise of Binance Pay raises questions about the future of the sector, with regulators likely to keep a close eye on this growth as they seek to regulate these new uses. Furthermore, the increasing adoption of crypto payments could put pressure on certain players in the traditional banking system, driving them to innovate to avoid falling behind.

As Binance's crypto reserves also soared by 137% to reach $100 billion, the exchange continues to strengthen its influence across the entire crypto ecosystem.