Highlights:
- Base surpassed all blockchain networks in daily stablecoin volume on Saturday.
- On Oct. 26, USDC accounted for 62% of all stablecoin volume transactions.
- Circle CEO predicts USDC could reach a $6.6 trillion annual run rate soon.
Coinbase’s layer-2 network, Base, surpassed all blockchain networks in daily stablecoin transfer volume on Oct. 26, capturing 30% of all transfers, according to Artemis Terminal data, as cited by Peter Schroder in an Oct. 27 post on X. This marked the first time Base outpaced usual leaders like Ethereum, Solana, and, Tron in single-day volume.
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Base processed more than $18.1 billion in stablecoin transactions that day. Remarkably, 99.9% of these transactions were in USDC, contributing to over 30% of the day’s total stablecoin transaction volume. Solana took second place with 25% of the stablecoin volume out of the $60 billion transferred on Saturday. Ethereum followed in third with 20%, while Tron came in fourth at 16.7%.
For the first time ever, @base led all chains for total stablecoin transfer volume in a single day.
On October 26th, Base processed 18.1B+ in stablecoin transaction volume (99.9% was in USDC) accounting for over 30% of all stablecoin transaction volume that day. pic.twitter.com/OXKdSLgWUR
— Peter Schroeder (@peterschroederr) October 27, 2024
USDC Could Hit $6.6 Trillion Annual Rate as Base Dominates: Circle CEO
In an Oct. 27 post on X, Circle CEO Jeremy Allaire commented on Base’s brief dominance. He stated that if this trend continues, USD Coin (USDC) could achieve an annual run rate of $6.6 trillion on Base alone. On Oct. 26, USDC represented 62% of all stablecoin volume, while Tether’s USDT accounted for 30%. The algorithmic stablecoin DAI took third place, making up 7.4% of the total daily volume.
Wow. That’s a $6.6 trillion annual run rate for USDC on @base https://t.co/AMbsBIj4bg
— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) October 27, 2024
The increase in stablecoin volume market share coincides with a steady rise in network activity on Base. On Oct. 26, Base recorded a record 5.6 million daily transactions, marking a 20% increase over the past month, according to Dune Analytics.
Solana Leads Year-to-Date Stablecoin Volume
Solana leads all other chains in year-to-date cumulative stablecoin volume, reaching $8.6 trillion. This puts it ahead of Ethereum’s $6.1 trillion so far this year. However, the month-to-date ranking is different. In October, Base slightly outranks Solana by under $4 billion. Base has reached $361 billion in stablecoin volume this month, compared to Solana’s $357.2 billion, according to Artemis.
Base’s Head of Defi, on X, stated:
“Stablecoins provide a great opportunity to increase economic freedom. [Base] enables builders to create great products using stablecoins, and those products are rapidly gaining traction.”
Dogecoin Developer Says Holding Stablecoins Is Risky
In a recent post on X, Mishaboar, a prominent Dogecoin developer, urged the crypto community to avoid stablecoins like Tether, USD Coin, and PayPal USD (PYUSD). Mishaboar warned that holding these assets is ‘inherently risky’ and could harm investors due to the potential collapse of their backing or reserve assets. He raised concerns about the risk of collapsing reserves. Additionally, he emphasized that companies like Tether, Circle, and PayPal have the authority to freeze users’ assets if requested.
Mishaboar believes that holding Bitcoin (BTC), Dogecoin (DOGE), Litecoin (LTC), and Monero (XMR) is a better option. He argues that Monero, while provocative, is significantly less risky overall. Contrary to the opinions of many crypto advocates, Mishaboar also recommended holding fiat currencies with real value, claiming they are comparatively safer.
Dear #Dogecoin, as I have repeated countless times:
holding “stable”coins like USDT or USDC or PYUSD is inherently risky. Not just in the (always possible) case of a catastrophic collapse of whatever castle of cards or institution is backing them.
They are risky assets…
— Mishaboar (@mishaboar) October 25, 2024
Chainalysis’ latest report shows that the U.S. is lagging in stablecoin adoption due to regulatory uncertainty, even as global demand for US dollar-backed stablecoins increases. Meanwhile, Bitcoin activity in the country has surged following the launch of spot Bitcoin ETFs. In 2024, stablecoin transactions on U.S. platforms dropped to below 40%, down from 50% the previous year, while non-U.S. platforms exceeded 60%.
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