Stablecoins have made a huge impact in the payments industry, settling more than $11 trillion in value in 2022, rivaling Visa’s $11.6 trillion. This is according to a report by European hedge fund Brevan Howard.The report found that over 25 million blockchain addresses held more than $1 in stablecoins, with the majority of these being fiat-backed, such as USDT, USDC, BUSD, and TUSD. It was also revealed that the majority of stablecoin users in 2022 were small or retail investors, with 75% of weekly active stablecoin addresses conducting transactions of less than $1000.Stablecoin volumes only dipped 11% since December 2021, while broader centralized and decentralized exchange volumes plunged 64% and 60%, respectively. Ethereum settled 50% of all stablecoin volumes, but only contributed to 3% of total transactions due to its high transaction fees. Tron and Binance Smart Chain (BSC) combined powered 75% of all stablecoin transactions, equating to 41% of the total volume.Tether’s USDT was the leader in 2022, commanding 69% of the total stablecoin supply, 80% of weekly active addresses, and 75% of the transaction pie. Despite the success in 2022, stablecoins are trailing behind Mastercard year-to-date in 2023 due to crypto market cycles and a challenging U.S. regulatory climate. However, Brevan Howard’s projections suggest that stablecoins might surpass Bitcoin users within five years, driven by payment integrations and groundbreaking innovations.
| Information |
Details |
| Geography |
Global |
| Countries |
|
| Sentiment |
neutral |
| Relevance Score |
9 |
| People |
Peter Johnson, Sai Nimmagadda |
| Companies |
Visa, Paypal, Mastercard, Brevan Howard, Tether, Ethereum, Tron, Binance Smart Chain (BSC) |
| Currencies |
USDT, USDC, BUSD, TUSD, Bitcoin, Ethereum |
| Securities |
None |
