In October 2020, the volume of stablecoins was at $100 billion, marking a 16-fold increase over the last four years. This significant growth reflects positive trends in the market.
However, in May 2024, there was a slight dip in the monthly transfer volume of stablecoins. Despite this, the increasing market cap of stablecoins demonstrates growing investor confidence, with more capital entering the market.
Stablecoins offer a hedge against crypto volatility, making them a preferred choice for some traders. Additionally, integrating stablecoins into traditional financial systems and payment networks has made them more accessible and practical for everyday use.
The main use cases for stablecoins include cross-border payments, payouts, and merchant acceptance. Regulatory clarity regarding stablecoins in various financial spheres has enhanced trust in their usability.
Furthermore, future discussions in the United States are underway to establish stablecoin-related policies, further shaping the direction of this market.
