Stablecoins on track to settle $5.3t in 2024 despite hurdles

According to a new study, stablecoins reached $3.7 trillion in value by 2023 and are on track to reach $5.28 trillion by 2024. Their use is also increasing beyond exchange transactions.

According to the research report “Stablecoins: The Emerging Market Story,” supported by Visa and authored by Castle Island Ventures and Brevan Howard Digital, stablecoins continue to solidify their role in the global financial landscape, with payment volumes set to reach $3.7 trillion by 2023.

Adjusted stablecoin trading volume closed by network, monthly | Source: Castle Island Ventures

The data revealed that stablecoins were valued at $2.62 trillion in the first half of 2024, on track to reach $5.28 trillion on an annualized basis by the end of the year. Despite the broader crypto sell-off and declines in exchange volume over the past two years, stablecoin transactions have grown steadily, highlighting their adoption beyond commerce.

Nic Carter, co-founder of Castle Island Ventures, told crypto.news that the research aims to highlight “how ordinary people are using stablecoins.”

“We wanted to show with the data that stablecoins have uses outside of pure crypto trading and speculative use cases. And I think this data clearly showed that.”

Nic Carter, co-founder of Castle Island Ventures

The report states that the most popular blockchains for stablecoin payments are Ethereum (ETH), TRON (TRX), Arbitrum (ARB), Coinbase’s Base, BNB Chain (BNB), and Solana (SOL), with Ethereum leading by a significant margin, while BNB Chain and Solana are also among the prominent ones.

Emerging markets are driving stablecoin adoption

Surveying more than 2,540 crypto users across Nigeria, Indonesia, Turkey, Brazil, and India, the researchers found that while trading crypto or non-fungible tokens remains the most popular use case for stablecoins, non-crypto purposes are not far behind.

Use of stablecoins by primary objectives | Source: Castle Island Ventures

In fact, 47% of respondents cited saving in dollar-denominated assets as a primary goal, 43% highlighted better currency conversion rates, and 39% focused on generating returns. The findings highlight that non-crypto uses now account for a significant share of stablecoin activity in these emerging markets.

Key findings include that 57% of users reported an increase in stablecoin usage in the past year, while 72% expect usage to increase in the future.

The report notes that Tether (USDT) remains the most trusted and widely used stablecoin thanks to “user trust, liquidity, and track record compared to other stablecoins.” Users in these markets cite “yield, efficiency, and lower likelihood of government intervention,” citing stablecoins as a preferred alternative to U.S. banking.

The report emphasized that the findings “refute the widespread belief that stablecoins are used solely as a vehicle for speculative trading of crypto assets.” The report stated that the evolution in stablecoin usage shows that these assets have evolved “from mere trade collateral to a general-purpose digital dollar instrument in the countries surveyed.”