Adoption of stablecoin payments continued to flourish last year despite massive capital outflows across the cryptocurrency market, according to a new report by European hedge fund manager Brevan Howard.
Analysts found that the stablecoin market will be worth more than $11 trillion in 2022, with more than 25 million addresses holding more than $1 in stablecoins.
The total value settled through stablecoins last year was close to the $11.6 trillion of credit card payments giant Visa.
Given that 75% of weekly active stablecoin addresses trade less than $1,000 per week, most stablecoin users are likely retail users, the report said.
More than two-thirds of stablecoins are held outside of exchanges and smart contracts. Although approximately 50% of stablecoin transaction volume is settled on Ethereum alone, the network accounts for only 3% of total transaction volume.
In comparison, Tron and BSC accounted for 75% of stablecoin trading volume and 41% of trading volume.