In a revolutionary shift in the digital economy, the transaction volume of the three main stablecoins, Tether (USDT), USD Coin (USDC), and DAI, has surpassed the average monthly transaction volume of Visa for 2023, according to recent data from the on-chain analysis company Nansen.
This marks a significant milestone in the adoption and use of cryptocurrencies, reflecting a growing preference for digital and decentralized financial solutions.
The numbers of Visa transactions for Tether (USDT), Circle (USDC) and DAI
According to Nansen, Tether, the stablecoin with the largest market capitalization, has processed a staggering $654 billion in transactions in the last 30 days. In comparison, DAI has facilitated over $394 billion, and USDC has recorded a transaction volume of $321 billion.
Combined, these three stablecoins have reached a total transaction volume of 1.369 trillion dollars, surpassing Visa’s monthly average of 1.23 trillion dollars from the previous year.
This comparison highlights the increasing importance of cryptocurrencies in daily financial transactions, challenging traditional payment networks like Visa, which reported a total annual volume of 14.8 trillion dollars in 2023.
The data also shows that only Tether has almost reached the transaction volume of Mastercard, the second largest card provider in the world, which had an average monthly volume of 750 billion dollars in 2023.
Furthermore, the volume of Tether transactions has surpassed that of PayPal, which handled an average of 125 billion dollars every month last year. This comparison illustrates the growing reliance on stablecoins for substantial financial transactions and their potential to disrupt conventional payment systems.
Visa’s innovative moves
Visa itself, recognizing the evolving landscape, released a report in April suggesting that USDC should be considered the leading stablecoin in terms of transaction volume.
This statement was based on the analysis by Visa, which excluded what it defined as “non-organic” activities such as bot-driven transactions and complex interactions with smart contracts.
After filtering these elements, Visa found that the volume of USDC transactions has exceeded that of Tether on a weekly basis.
The criteria used by Visa included transactions sent from accounts that have initiated less than 1,000 transactions in stablecoin and less than 10 million dollars in transfer volume in the last 30 days, effectively removing the noise created by automated systems and large-scale trading operations.
This shift towards the use of stablecoins could be attributed to several factors. First of all, stablecoins offer the benefits of cryptocurrencies, such as decentralization and borderless transactions, without the volatility typically associated with other digital currencies like Bitcoin and Ethereum.
This makes them particularly attractive to companies and individuals looking for a stable store of value and efficient cross-border transactions.
Furthermore, the integration of blockchain technology facilitates transparency and security, improving trust among users. The immutable ledger of the blockchain ensures that all transactions are recorded and visible, reducing the risk of fraud and errors.
This level of security is particularly crucial in a financial landscape increasingly threatened by cyber attacks and financial crimes.
Conclusions
The adoption of stablecoins is driven by their increasing utility in the decentralized finance (DeFi) sector, where they are commonly used as a medium of exchange and as a stable collateral asset.
The rise of DeFi platforms, which offer financial services without the need for traditional intermediaries such as banks, has created a strong demand for stablecoins.
With the continuous increase in transaction volumes of stablecoins, it is clear that they are not only challenging traditional financial systems, but are also redefining the way global financial transactions are conducted.
The implications of this shift go beyond the simple metric of transactions; they signal a broader movement towards a more inclusive and decentralized financial ecosystem.
As a result, the ongoing evolution of stablecoins is likely to have lasting impacts on financial policies, regulation, and the overall structure of the global economy.