Stablecoins Record Higher Transaction Volumes than Visa and Mastercard Combined in 2024

Stablecoins recorded higher transaction volumes than Visa and Mastercard combined in 2024, reflecting their growing dominance in the global financial ecosystem.

Stablecoins Outpace Visa, Mastercard in Transaction Volumes, Driven by Bots

Stablecoins recorded higher transaction volumes than payment giants Visa and Mastercard combined in 2024, highlighting their growing dominance in the global financial ecosystem.

According to a Jan. 31 report by crypto exchange CEX.io, stablecoin transfer volumes reached $27.6 trillion throughout the year, surpassing the combined volumes of Visa and Mastercard by 7.7%. The two payment networks processed a combined total of $25.6 trillion in transactions during the same period.

The report also noted a 59% surge in stablecoin supply, which now constitutes roughly 1% of the total U.S. dollar supply. However, despite the higher transaction volumes, stablecoins lost 13.5% in their total market capitalization share, mainly due to declining activity in the broader crypto market during Q3 2024.

"Following post-election spikes in crypto activity, stablecoin adoption soared, pushing their transaction volumes two to three times higher than those of Visa and Mastercard in Q4 alone," said Illia Otychenko, lead analyst at CEX.io.

Tether (USDT) remained the clear leader in the stablecoin market, accounting for 79.7% of the total trading volume. The stablecoin also saw increased reserves on centralized exchanges, further solidifying its position as the dominant player in the space.

The rise of stablecoin usage for savings and remittances also contributed to the surge in transaction volumes. However, the primary role of stablecoins continued to be within crypto trading and decentralized finance (DeFi).

Bots Drive Stablecoin Transactions on Solana and Base

Interestingly, automated trading bots played a significant role in boosting stablecoin transactions throughout the year. CEX.io estimates that 70% of the total stablecoin transfer volume was driven by bot activity. On certain networks like Solana and Base, this percentage surged to 98%.

"While bot transactions can include harmful practices like frontrunning and pump-and-dump schemes, they also contribute to market efficiency through arbitrage trading and gas fee coverage by paymasters," Otychenko noted.

Despite concerns over manipulation, bot-driven stablecoin transfers also highlight the maturation of certain blockchain networks, particularly in their role as liquidity providers in DeFi. The deep integration of stablecoins into automated trading suggests that their dominance in digital transactions will likely persist.

Ethereum, Tron Maintain Lead as New Networks Gain Ground

Among blockchain networks, Ethereum and Tron maintained their positions as the top networks for stablecoin transactions. The two networks accounted for over 83% of the market by the end of 2024. However, their combined market share declined from 90% at the start of the year.

This shift indicates a broader trend toward emerging networks such as Solana, Arbitrum, Base, and Aptos, which saw their market shares increase significantly over the same period. Tron’s market share notably dropped from 38% to 29%, reflecting the broader changes in stablecoin distribution.

In contrast to Tron, Ethereum’s stablecoin market capitalization surged by 65% to reach a new all-time high by the end of 2024. According to the report, analysts attributed this growth to lower transaction fees following the Dencun upgrade in March and increased optimism in the crypto market following the U.S. elections.