Stablecoins, with a market valuation of over $200.000 billion, will surpass Visa and Mastercard in transfer volume by 2024.
A recent report, which analyses the evolution of the stablecoin sector throughout 2024, has revealed surprising data that confirms the rise of these digital currencies with stable value as a major player in the global financial landscape. With a market valuation that exceeded $200.000 billion, its impact on the financial ecosystem is undeniable.
According to the report, the annual volume of stablecoin transfers reached a staggering figure of $27,6 trillion dollars in 2024. This figure represents a considerable increase compared to previous years and, more importantly, exceeds by 7,7% the combined volume of transactions processed by Visa and Mastercard during the same period.
The data highlights the growing adoption of stablecoins as means of payment and savings, in addition to their use in numerous financial operations within the crypto ecosystem. According to the report, the ease and speed of transactions, along with the stability of their value, have made these digital currencies an attractive option for a variety of users, from individual investors to financial institutions. In addition, the increasing integration of stablecoins into e-commerce platforms and traditional financial services has only helped to further boost this growth.
Source: CoinMarketCap
The main growth areas of the stablecoin market
The increase in stablecoin transaction volume is not limited to just one sector. According to the report, a significant increase was observed in different areas in 2024, including the E-commerce, international remittances, and, perhaps surprisingly, the market for decentralized finance (DeFi). Regarding this last sector, the integration of these digital currencies into DeFi platforms has opened up new possibilities for cryptocurrency investment and lending, contributing to the expansion of the ecosystem and the demand for these stable digital currencies.
There was also a notable increase in the use of stablecoins for saving and making payments, especially in developing countries where fiat currencies can experience strong fluctuations.
USDT dominance and the growth of other cryptocurrencies
Although USDT maintained its dominant position in the stablecoin market throughout 2024, accounting for 79,7% of trading volume, significant shifts in market distribution were observed. Other stablecoins, such as USDC, experienced notable growth, driven in large part by their increasing popularity in the DeFi sector.
The diversification of the market, with the emergence of new stablecoins and increased competition, is an indication of the maturity of the sector. However, this growth was not limited to fiat-backed stablecoins, as decentralized and yield-bearing stablecoins also experienced considerable growth, albeit with an inherently higher level of risk than the former.
On the other hand, the report noted that different stablecoins compete not only in terms of transaction volume, but also in terms of to maximise security and your enjoyment., transparency y efficiency, and this continued innovation ensures that stablecoins continue to improve and adapt to changing market needs.
Base, Solana, Arbitrum and Aptos challenge the dominance of Ethereum and TRON
2024 also brought a significant shift in the stablecoin hosting landscape. Data shows that the near-absolute dominance of Ethereum and Tron, which in previous years accounted for 90% of the market, has dropped to 83%. This decline reflects a trend towards decentralization and diversification in the crypto ecosystem, with new platforms, such as Base, Solana, Arbitrum and Aptos, emerging strongly and attracting a significant portion of the market share previously consolidated by the two ecosystem giants.
Finally, despite the exponential growth of the market, with the supply of stablecoins reaching 1% of the supply in US dollars, the market simultaneously lost 13,5% of its weight within the total capitalization of cryptocurrencies.
Still, 2024 was a pivotal year for stablecoins. Their massive growth in transaction volume, surpassing even large traditional financial firms, demonstrates their growing importance in the global financial ecosystem. While there are challenges to be addressed, the future outlook for stablecoins looks promising, so one could expect further integration of these digital currencies into the global economy.
