In 2024, stablecoins surpassed Visa in transaction volume, marking a significant milestone in the adoption of cryptocurrencies. This shift was highlighted by a Bitwise report that revealed stablecoins had outpaced Visa for the first time ever. While Visa’s transaction volume reached $13 trillion in 2023, stablecoins logged $7 trillion. However, in 2024, stablecoins saw a staggering increase, reaching nearly $14 trillion in volume, while Visa only marginally surpassed $13 trillion.
This development has major implications for the crypto industry, as stablecoins are becoming increasingly popular due to their practical use cases, particularly in cross-border payments. Traditional finance firms like Visa are now facing the threat of disruption in this segment, with stablecoins poised to dominate the $44 trillion cross-border payment market within the next five years. The growing interest in stablecoins from major companies such as PayPal, Fidelity, and Bank of America further indicate the forthcoming adoption of stablecoins.
Unlike volatile cryptocurrencies, stablecoins are pegged to stable assets like the US dollar or commodities like gold, maintaining a stable value. The most popular stablecoins, such as Tether’s USDT and Circle’s USDC, are backed 1:1 by reserve assets. The ongoing legislation surrounding stablecoins, with two bills in the Senate and House of Representatives, is expected to be passed by July, which could further drive adoption at scale. This increased adoption of stablecoins is likely to spill over into decentralized finance (DeFi) and the broader crypto space, benefiting adjacent sectors and applications.
Fed Chair Jerome Powell has also expressed support for stablecoin legislation, noting that it is a ‘good idea’ amid the mainstream adoption of cryptocurrencies. As of April, Tether’s USDT remains the dominant player in the stablecoin sector with a market cap of $148 billion, followed by USDC with $59 billion. Overall, the surge in stablecoin transaction volume, combined with the growing interest from major financial institutions and regulatory support, indicates a promising future for stablecoins and their potential to revolutionize the way cross-border payments are conducted.
