Stablecoin On‑Chain Volume Rockets to Nearly $1.4 Trillion in May

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:

1. DeFi and Yield Farming
   Gone 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 countless users shifting funds on‑chain to put idle cash to work.
2. Faster, Cheaper Cross‑Border Payments
   Whether you’re a freelancer in Manila getting paid by a client in Berlin, or a business sending money across continents, stablecoins offer near‑instant settlement without the rollercoaster price swings of Bitcoin or Ether. It’s quick, predictable, and often cheaper than traditional wire transfers or other methods.
3. Growing Regulatory Confidence
   It is true that clarity breeds adoption. In the U.S., a recent bipartisan Senate bill laid down the groundwork for stablecoin oversight. Across the pond, Europe’s new MiCA framework is rolling out licenses for issuers. All of this has reassured banks, payment firms, and big‑ticket institutions that stablecoins aren’t going anywhere—and that they’d better get on board.
4. On‑Chain Trading & Arbitrage
   As spreads tighten across DEXs and CEXs, high‑frequency traders and market‑makers are pumping vast amounts of stablecoins through smart contracts to capture price inefficiencies.

Looking Ahead

The stablecoin ecosystem is now comfortably eclipsing traditional payment rails in sheer volume. Market watchers will be keen to see whether new regulatory frameworks maintain their momentum or if tighter guardrails could temper growth. For now, the trend line remains clear: dollar‑pegged tokens have become indispensable plumbing for the modern crypto economy.