Stablecoin, which plays a major role in the global cryptocurrency ecosystem. Stablecoins play a very important role in the crypto sector especially for investors to keep their money safe during various volatile markets. Supply has seen a significant increase of more than half a percent due to demand for stablecoins. That reached 1% of the US dollar supply.
[source](https://pixabay.com/photos/bitcoin-blockchain-currency-3411309/)
Demand is increasing day by day and stablecoins beat Visa and MasterCard in volume. Although its demand has increased but the stablecoin has lost 13.5% share of the total market cap. Demand for stablecoins generally increased last year despite declining activity in the broader crypto market, mainly due to a decline in market share in the third quarter of last year. Widely adopted in 2024, their transfer volume combined with Visa and MasterCard.
Crypto exchange CEX.io released a report about stablecoins and there they reported that annual stablecoin transfers reached $27.6 trillion last year. Which is one of the records and this record exceeds the combined volume of Visa and MasterCard. The chief analyst of CEX.io shared his own opinion on this and claimed that one of the main catalysts for the increase in stablecoin transfer volume is the increased use of bots, especially Solana and Base.
Especially considering how popular USDt is on various exchanges and is one of the most preferred stablecoins among users, it is currently the world's largest stablecoin by market capitalization. USDt accounts for about 80 percent of stablecoin trading volume on average, strengthening its position among the growing stablecoin reserves on centralized exchanges.
There has also been an increase in both stablecoin supply and volume day by day in post-US election crypto activity. They are becoming popular especially with investors especially as we know that the crypto market is prone to volatility. Stablecoins play an important role in keeping your money safe in this volatile market. So in Q4 of last year alone, Visa and MasterCard doubled and tripled respectively.
Also, stablecoins are increasingly used for savings and remittance transfers as a cost-effective way to transfer money and transfer value through these coins compared to traditional payment methods. However, stablecoins' role as the lifeblood of crypto trading and DeFi interactions currently outpaces this trend. Anyway if you want to know more details about it then you can read this [news](https://cointelegraph.com/news/stablecoins-beat-visa-mastercard-2024-volume) .
