Stablecoins Surpass Mastercard and Visa in Transaction Value
The world of digital payments saw a significant shift in 2024 as the transaction value of stablecoins soared to $15.6 trillion, surpassing traditional giants Mastercard and Visa. According to the latest data from the Ark Invest Big Ideas Report 2024, stablecoins outpaced Mastercard and Visa by 200% and 119%, respectively. This milestone comes amidst a two-year bear market that saw a substantial decline in overall market capitalization, highlighting the resilience and growth potential of stablecoins.
The report also revealed that the number of monthly stablecoin transactions reached a staggering 100 million in 2024, with approximately 72% and 41% of these transactions being processed by Mastercard and Visa, respectively. This marks a significant increase from the previous year, where the value of stablecoin transactions was around $7 trillion, with Visa leading the way at $13 trillion.
Top Players in the Stablecoin Market
Tether (USDT) continues to dominate the stablecoin market, closely followed by Circle (USDC), with the two accounting for 90% of the total supply. Tether reported profits of $5.2 billion in the first half of 2024, with the top five stablecoin networks and applications generating a combined revenue of $3.35 billion during the second half of the year.
Regulatory Focus on Stablecoins
As stablecoin usage gains momentum globally, regulatory scrutiny is also increasing. President Donald Trump’s AI and crypto czar, David Sacks, has signaled that creating stablecoin legislation is a top priority within the White House. Republican Senator Bill Hagerty recently introduced a bill aimed at establishing a clear regulatory framework for stablecoins, emphasizing the importance of reinforcing the dollar’s dominance and positioning the US as a leader in the crypto sphere.
Looking Ahead
The exponential growth of stablecoins in 2024 underscores their growing importance in the digital payments landscape. As users continue to embrace the convenience and efficiency of stablecoin transactions, regulatory clarity will be crucial to ensuring their safe and secure operation. With stablecoins reshaping the way we perceive and conduct financial transactions, the future looks bright for this innovative form of digital currency.
