Understanding Stablecoins’ Real-World Usage

Stablecoins are gaining traction beyond speculative trading, according to a survey across five countries.

In the report titled Stablecoins: The Emerging Market Story, conducted by Castle Island Ventures, Brevan Howard, Artemis, and Visa Crypto, key findings highlight that of the $2.6 trillion value settled in stablecoins in 2024, many have practical applications.

Nic Carter from Castle Island stated, “We felt there was a lack of data around how folks are actually using stablecoins around the world, especially in emerging markets.” The survey was carried out between May 29, 2024, and June 13, 2024, involving 2,500 users in Brazil, Nigeria, Turkey, Indonesia, and India.

Key Findings

• The total stablecoins in circulation reached nearly $170 billion, proving to be the “killer app” of crypto.
• A conservative estimate suggests $3.7 trillion value was settled using stablecoins in 2023.
• Stablecoin transactions in the first half of 2024 totaled about $2.62 trillion, indicating an annualized pace of $5.28 trillion.
• 57% of users reported increased stablecoin usage over the past year, with 72% predicting this trend will continue.

Use Cases Beyond Trading

When stablecoins are not used for trading, popular applications include:
– Currency conversion
– Paying for goods
– Remittances
– Receiving salaries

Regional Variations:
– In Turkey, earning yield through stablecoins is a primary use case.
– In Nigeria, users often save money in U.S. dollars.
– Indonesia users favor stablecoins for B2B payments due to easier accessibility compared to USD banking, while users in Africa cite foreign exchange as a primary application.

Conclusion

Tether’s USDT remains the leading stablecoin with $118 billion of the total stablecoins in circulation. Ethereum, rather than Tron, is the primary blockchain for value exchange.