Stablecoins Set New Volume Record in DeFi

Cryptocurrencies in the stablecoin segment set a record in November with a transfer volume exceeding $700 billion. This data indicates that the use cases for stablecoins are rapidly expanding and beginning to challenge traditional payment systems.

According to data compiled by Visa, Tether's USDT accounted for $500 billion of this volume. The Tron blockchain network emerged as a leader in transfer transactions, surpassing its competitor Ethereum with a volume of $314 billion compared to Ethereum's $247 billion. If stablecoin transfers maintain this monthly pace, they could reach an annual transaction volume of $8.4 trillion, approaching Visa's recorded volume of $12.3 trillion in 2023.

Tron has become a preferred platform for stablecoin transfers due to its speed and low transaction fees. Its close ties with Tether and Binance have also played a significant role in shaping this scenario.

However, the number of stablecoins on Tron continues to decline. In November, the amount of USDT on Tron decreased by $2 billion, while the supply of USDT on Ethereum increased by $20 billion during the same period, reflecting a 31% growth. This discrepancy highlights the different use cases for stablecoins on the two blockchain networks.

Ethereum users primarily utilize stablecoins for leveraged transactions in lending protocols like Aave. In contrast, Tron users predominantly prefer the network for payment transactions. These trends indicate that the blockchains cater to different user profiles and are evolving according to changing needs.

The total market capitalization of stablecoins reached an all-time high of $193 billion in November. Financial technology giants such as PayPal, Robinhood Markets, and Ripple have also entered this growing market by launching their own stablecoin projects.