Crypto: The rise of stablecoins is transforming the industry

The crypto industry is experiencing a spectacular breakthrough, notably thanks to the massive support of stablecoins. In four years, stablecoin transfers have exploded by 1500%, reaching a record monthly volume of $1.68 trillion in April. This massive adoption illustrates the growing confidence of investors and the integration of these assets into traditional financial systems, thus disrupting the global economic landscape.

A phenomenal growth of stablecoin transfers

Monthly stablecoin transfer volumes have ~10x'd over the past 4 years.

From $100B to $1T+ per month.

Benchmark value from @Visa:

"During our FY23, the Visa network enabled $15 trillion in total volume." – Ryan McInerney, Chief Executive Officer pic.twitter.com/KxrUyb1IIW

— Token Terminal (@tokenterminal) June 19, 2024

Since October 2020, the volume of stablecoin transfers, a highly valued asset in Europe, has increased 16-fold, from $100 billion to an impressive $1.68 trillion in April 2024, states Token Terminal. This growth illustrates the massive adoption of stablecoins, bolstered by their crucial role in crypto trading and providing liquidity on DeFi platforms.

Despite a slight decrease in May 2024, the overall trend remains positive, supported by the growing integration of stablecoins into traditional payment networks. Their combined market capitalization has exceeded $162 billion, an increase of 24% since January.

This increase reflects a renewed confidence from investors, who see stablecoins as a hedge against cryptocurrency volatility.

Stablecoins, a pillar of the crypto industry

The rise of stablecoins is not limited to DeFi platforms. They also play a central role in international payments and daily transactions.

Visa reports that about $3.3 trillion in stablecoins are exchanged each month, underscoring their growing importance in the global economy.

Stablecoins offer a convenient and secure solution to bypass traditional banking systems, facilitating cross-border payments and wages.

Moreover, the regulatory clarity in several jurisdictions strengthens confidence in these digital assets. However, challenges remain, particularly in governance, operational resilience, and legal compliance.

The future policy of the United States on stablecoins will be crucial for their continued adoption and their impact on global financial stability.

The rise of stablecoins is radically transforming the crypto sector. What will be their future role in the global economy?