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Stablecoins play a very important role in today’s crypto economy, and despite the recent broad market crash, stablecoin volumes continue to dominate most exchanges.
According to data from Coinmetrics, on-chain stablecoin payments are expected to surpass $7 trillion in 2022 and nearly $8 trillion by the end of the year. Visa, the largest card network, processes up to $12 trillion annually.
Peter Johnson, co-head of ventures at Brevan Howard Digital, said stablecoin payments have already surpassed Mastercard and American Express. Furthermore, we predict that by 2023, the volume of on-chain stablecoins will surpass Visa’s transaction volume.
He also noted that the amount of stablecoins will likely exceed not only Visa, but all four major card networks (Visa, Mastercard, AmEx, and Discover) combined. , added that the volume of these on-chain stablecoins does not include the trading volume of centralized exchanges, which have their own significant share.
3/ (Note that this is just on-chain settlement volume and does not include trading volume on centralized exchanges)
Peter Johnson (@TheChicagoVC) December 21, 2022
While this comparison clearly shows a significant increase in stablecoin usage, many users pointed out that the comparison of the two entities is baseless as they are two different things. I’m here.
Related: US Stablecoin Regulation: A Beginner’s Guide
There is a difference between credit card volume and stablecoin payments. While credit card transactions are generally associated with consumer spending, fiat-pegged crypto assets are primarily associated with crypto trading and decentralized finance.
Hmm, it’s like comparing apples and oranges. Volumes such as Mastercard/discover are financed from consumer spending. On-chain volume is based on investor speculation.
This $7 trillion+ must come from payments for consumer goods/services using stablecoins for proper comparison
Kim (@0xKimberly) December 21, 2022
Like Visa and Mastercard, the main barrier to consumer active use of stablecoins is regulation. But Republican Senator Pat Toomey is set to retire from the U.S. Congress at the end of his term and aims to change that with his stablecoin bill. ) to allow non-state and non-banking institutions to issue stablecoins as long as they obtain a federal license created and issued by High quality liquid assets. “
In terms of market capitalization, stablecoins currently account for about 16.5% of the total. CoinGecko data shows that the combined value of all stablecoins is around $140 billion. Tether-issued USDT currently dominates the stablecoin market with a total supply of 66.3 billion USDT, followed by Circle’s USDC with 44.3 billion UDSC market supply.
