Stablecoin Retail Use Soars: BSC, Ethereum Gain Ground
Retail Stablecoin Transfers Reach Record Highs
Stablecoin adoption among retail users is surging, with transaction volumes already surpassing last year's totals by August, according to a recent CEX.io report. Retail-sized transfers (under $250) hit a record $5.84 billion in August alone, signaling a deeper integration of stablecoins into everyday financial activities.
The report highlights stablecoins' growing importance for cross-border remittances and microtransactions, particularly in emerging markets where high banking fees and slow transfer times are common pain points.
Key Findings:
- Record Volume: August saw the highest ever recorded volume of retail stablecoin transfers.
- Emerging Market Demand: Surveys in Nigeria, India, Bangladesh, Pakistan, and Indonesia show users increasingly rely on stablecoins to avoid traditional banking issues.
- Increased Usage: Nearly 70% of respondents reported using stablecoins more frequently than last year.
- Future Growth: Over 75% expect their stablecoin usage to continue rising.
Blockchain Shifts: BSC and Ethereum Gain
The distribution of stablecoin activity across blockchains is evolving. Tron, traditionally favored for its low fees, is losing ground. Its monthly transaction counts decreased by 1.3 million (6%), while its volume growth lagged behind competitors.
Binance Smart Chain (BSC) has emerged as the preferred choice for retail users, capturing nearly 40% of retail stablecoin activity. Transaction counts on BSC surged by 75% this year, with a 67% increase in transfer volume. This growth is attributed to Binance's USDT delisting for European users and a resurgence of memecoin trading on PancakeSwap.
The Ethereum ecosystem (including Layer-2 networks) accounted for over 20% of transfer volume and 31% of transaction counts. While smaller transfers predominantly occur on L2s, the Ethereum mainnet experienced significant growth in the retail segment. Sub-$250 transfers on the mainnet saw an 81% increase in volume and a 184% increase in transaction count, driven by decreasing transaction costs on the mainnet.
As retail stablecoin adoption grows, platforms like Codeum continue to provide essential security audits for stablecoin projects and smart contract development tools, ensuring a safer and more reliable experience for users. For new stablecoin projects, Codeum's KYC services provide added assurance for retail users looking to get involved in this emerging market.