• The Stablecoin market has grown, with over $1 trillion in transactions in 30 days.
• Monthly active stablecoin users reach 27.5 million, showing steady growth.

The stablecoin market is witnessing significant growth, with over $1 trillion in transaction volume recorded in the past 30 days. This surge is being driven by platforms such as Chainlink, which is accelerating stablecoin adoption through integrations with major players like PayPal and Aave.

The demand for stablecoins has picked up in 2024, with the circulating supply standing at around $150 billion. From the Onchain Analytics tool of Visa, there has been a noticeable increase in the usage of stablecoins, thus pointing to their increasing relevance in the world of digital finances. However, the report shows that there is a gap between the stated transaction volumes and the actual organic transactions. 

Visa Analyzes Stablecoin Transaction Volumes 

According to Visa’s analysis, $2.65 trillion in stablecoin transfers occurred over the last 30 days, but only $265 billion was deemed ‘organic,’ meaning that most transactions may not be tied to real-world commerce. A similar trend was seen in April 2024 when, of the total $2.2 trillion in transactions, only $149 billion was classified as organic.

Cuy Sheffield, the Head of Crypto at Visa, noted that stablecoin transactions can be counted twice depending on the platforms. For instance, swapping $100 worth of USDC for PYUSD on Uniswap increases the on-chain stablecoin volume by $200. This can result in double counting and, in turn, unjust representation of the transaction volumes. 

Additionally, automated programs that are used for stablecoin arbitrage, liquidity provisioning, and market making also boost transaction volumes. While these programs are important for the DeFi ecosystem, they are not the same as conventional settlement operations. 

In response, Visa has collaborated with Allium Labs to come up with an amended stablecoin transaction metric. This new metric is intended to address the issues stemming from inorganic activities and artificial extension. Allium Labs, a blockchain data company that works with Visa, Stripe, and Uniswap Foundation, has played a significant role in this. 

Monthly Active Stablecoin Users Show Steady Growth

Allium Labs has become popular for providing enterprise-grade blockchain data services. The startup recently closed its Series A funding round at $16. 5 million, taking the total amount of funding it has received to $21. 5 million. This funding will allow the enhancement of the blockchain data metrics to more precise values. 

The monthly active users of stablecoins in Allium and Visa show an upward trend even if there are differences between the total transfer volume and bot-adjusted transfer volume. The total active users across all blockchain networks stood at 27. 5 million monthly, revealing an upward trend. 

This growth can also be attributed to the integration of stablecoins in various platforms. Some of the projects that Chainlink has supported include PYUSD for PayPal and GHO for Aave, which has helped in increasing adoption. These integrations are making stablecoins more accessible and useful in everyday transactions. Chainlink (LINK)’s price has been up 3.54% in the past 24 hours, trading at $13.40. Additionally, over the past seven days, Link has registered a decline of 1%.