Stablecoins' Transactions Soar Past Visa, Signaling Crypto's Rise to Prominence

The total transaction volume of the three largest stablecoins, Tether (USDT), USDC, and DAI, has eclipsed Visa's monthly average in the past 30 days, with Tether alone processing volumes comparable to Mastercard. While Visa claims USDC as the leading stablecoin in transactions, adjusted data suggests otherwise, with USDC volumes surpassing USDT when excluding inorganic activity.

Stablecoins Surpass Visa's Transactions, Signaling Crypto's Growing Dominance

According to a comprehensive analysis conducted by blockchain analytics firm Nansen, the three leading stablecoins – Tether (USDT), USDC, and DAI – have collectively processed a staggering volume of transactions that eclipses the average monthly transactions processed by Visa in 2023.

Nansen's meticulously gathered data reveals that Tether, the dominant stablecoin by market capitalization, facilitated transactions worth $654 billion over the past 30 days. DAI followed closely with a transaction volume of $394 billion, while USDC recorded a substantial $321 billion.

"The combined transaction volume of these three stablecoins, amounting to $1.369 trillion, surpasses the $1.23 trillion monthly average of Visa's $14.8 trillion yearly volume in 2023," Nansen's report highlights.

This remarkable surge in stablecoin transaction volume is a testament to the growing adoption and utility of cryptocurrencies in various sectors. The use of stablecoins, which are pegged to fiat currencies such as the US dollar, provides users with the stability and familiarity of fiat while allowing them to reap the benefits of the blockchain ecosystem.

Nansen's analysis further demonstrates that Tether alone processed a volume nearly equivalent to Mastercard, the second-largest card provider globally. Mastercard processed $750 billion monthly on average in 2023, with an annual volume of $9 trillion. Tether's transaction volume also surpassed that of PayPal, which managed $125 billion on average per month last year.

However, it is important to note that Visa released a report in April claiming that USDC should be considered the leading stablecoin in terms of transaction volume. Visa's report focused on excluding inorganic activities and only considering the largest stablecoin amount transferred in a single transaction.

According to Visa's report, adjusting the data for bot activity, complex smart contract interactions, and automatic transactions from centralized exchanges resulted in USDC's transaction volume surpassing that of USDT on a weekly basis.

Regardless of the differences in methodology and perspectives, the overall trend is clear: stablecoins are playing an increasingly significant role in the digital economy. The high transaction volumes of stablecoins, particularly Tether, USDC, and DAI, underscore the growing acceptance and integration of cryptocurrencies into mainstream financial systems.

As the world continues to embrace digital transformations, the adoption of stablecoins is expected to continue at a rapid pace, further solidifying the position of cryptocurrencies as a viable and increasingly dominant force in the global financial landscape.