Stablecoin On‑Chain Volume Rockets To Nearly $1.4 Trillion In May

The post Stablecoin On‑Chain Volume Rockets To Nearly $1.4 Trillion In May appeared on BitcoinEthereumNews.com.

Sentora (formerly IntoTheBlock) has highlighted yet another milestone for stablecoins, revealing that on‑chain transaction volume surged to almost $1.4 trillion last month. The analytics firm shared a stacked‑bar chart on X (formerly Twitter), showing a steady climb in monthly volume since early 2020, with May’s tally marking a new all‑time high for these dollar‑pegged tokens. A Steady Climb to Record Levels Back in January 2020, combined stablecoin on‑chain activity barely broke the $50 billion mark. But as DeFi, NFT marketplaces, and cross‑border payments have leaned heavily on dollar‑pegged tokens, volumes have soared: 2020 total: ~$500 billion 2021 total: ~$850 billion 2022 total: ~$1.1 trillion 2023–2024 average monthly volume: $800 billion–$1 trillion May’s $1.38 trillion upswing not only eclipsed April’s $1.25 trillion but also handily outpaced major legacy payment networks; annualized, stablecoin volumes already dwarf Visa and Mastercard’s combined transaction figures. Dominance of the Big Two The stablecoin market itself has been on a tear. According to CryptoQuant, total market capitalization reached a record $228 billion in early June, up 17 percent year‑to‑date. Tether (USDT) remains the frontrunner, with a market cap hovering around $155–157 billion, buoyed by heavy demand on chains like Tron and expanding use in emerging markets. Circle’s USD Coin (USDC) follows, at roughly $61 billion, its growth fueled by MiCA licensing in Europe and strong payment‑use cases across North America and Latin America. Emerging entrants such as Pax Dollar (USDP), Frax (FRAX), and real‑world‑asset‑backed tokens like DGX are also carving out niches, but their on‑chain share remains modest compared to the “big two.” What’s Behind the Stablecoin Boom? It really comes down to a few big trends: DeFi and Yield FarmingGone are the days when most people just left their coins sitting idle on an exchange. Nowadays, you can park your stablecoins in lending protocols or liquidity pools and earn juicy annual percentage yields. The promise of solid returns has…