According to The Defiant, in 2022, stablecoins overtook MasterCard in terms of settlements by $5.2 trillion. The adjusted on-chain volume of stablecoin settlements reached a peak of $7.4 trillion in 2022. For comparison, Mastercard's network transaction volume totaled $2.2 trillion.
Over the past two years, the volume of stablecoin transactions has increased by 600%. In 2020, the total volume of transactions amounted to $1 trillion, and in 2021 - $6 trillion. Notably, trading volumes in other crypto assets decreased by 90%.
A spike in stablecoin transactions occurred despite the headwinds in the crypto market in 2022 and a noticeable decrease in many crypto assets. Apart from that, stablecoins exceeded payment giants in terms of settlements, including American Express ($1 trillion in transactions) and Discover ($200 billion in transactions). Only Visa holds the top spot with its $12 trillion worth of settlements.
Over the year, Tether (USDT) trading volume crashed to $3.5 trillion. Previously, this figure amounted to $3.7 trillion. Tether's main competitor, USD Coin (USDC), rose twice as high in comparison with last year. This year, USDC trading volume came in at $2.9 trillion.
The rivalry between the two stablecoins is intensifying. In early December 2022, Coinbase recommended its clients transfer assets from USDT to USDC. Coinbase noted that the recent turmoil in the crypto market caused panic among investors. The USDC token is one of the most reliable digital assets.
Stablecoins comprise about 18% of the total crypto market cap, CoinMetrics unveiled. In 2022, the total trading volume of 7 assets of this class, excluding USDT and USDC, jumped by 30%. In 2021, the volume of stablecoin settlements approached $1 trillion, CoinMetrics pointed out.
