a16z Crypto: 9 Charts to Understand the Evolution Trends of Stablecoins

Author: a16z crypto

Compiled by: Jiahua, ChainCatcher

Stablecoins have been searching for their position for years.

Initially, they were just a trading tool, a means of transferring dollars across exchanges. They then evolved into a savings tool, held by people rather than consumed. Now, data points to a new direction: stablecoins are gradually becoming core financial infrastructure.

The following nine charts reveal the factors driving this trend.

Regulation Accelerates Market Growth

For most of the time in the development of stablecoins, regulatory uncertainty limited institutional participation. Later, the GENIUS Act brought clarity to regulation. It did not create this trend but played a role in amplifying it.

In the United States, the GENIUS Act established the first federal-level framework for stablecoin issuance. This shift is clearly visible in the data: before the act was passed, adjusted trading volumes had been rising for several consecutive quarters, and after the act was passed, growth accelerated further, reaching approximately $4.5 trillion in the first quarter of 2026.

The regulatory framework in Europe—the Markets in Crypto-Assets Regulation (MiCA)—tells a more complex story. When this act fully comes into effect at the end of 2024, several major exchanges delisted USDT for compliance, leading to a surge in activity for non-dollar stablecoins, which once exceeded $40 billion.

Subsequently, trading volumes stabilized above the baseline levels prior to MiCA implementation, averaging about $15 billion to $25 billion per month. Regulation has created a persistent market for non-dollar stablecoins that barely existed before.

Stablecoin Business Activity is Growing

The most noteworthy structural change may be in how people are actually using stablecoins.

In terms of raw transaction numbers, the C2C category far exceeds all other categories, reaching 789.5 million by 2025. However, consumer-to-business stablecoin transactions are growing the fastest, increasing from 124.9 million in 2024 to 284.6 million in 2025, more than doubling year-on-year (+128%).

Data from stablecoin card infrastructure highlights this trend.

Monthly collateral deposits for stablecoin card projects supported by Rain (including Etherfi Cash, Kast, Wallbit, etc.) grew from nearly zero in November 2024 to over $300 million per month by early 2026. Although this is collateral supporting consumption rather than direct consumption of stablecoins, this trajectory is very notable: stablecoin business activity is on the rise.

The Velocity of Stablecoin Circulation is Increasing

The turnover frequency of every dollar of stablecoin supply is increasing.

Since the beginning of 2024, the velocity of stablecoins (the ratio of adjusted monthly transfer volume to circulating supply) has nearly doubled, rising from 2.6 times to 6 times. The increase in velocity means that the demand for stablecoin transactions exceeds the new issuance, and the existing supply is working harder.

This is a hallmark of a true payment network—base currency is being used in practice, not just held.

Stablecoin Transaction Volume Reflects More Payment Activity

Excluding transactions, fund flows, and exchange mechanisms that account for the bulk of stablecoin transactions, the total payments between different entities last year are estimated to still be between $350 billion and $550 billion.

In terms of transaction volume, the business-to-business sector dominates stablecoin payments (which is not surprising given its scale). However, other areas, such as direct consumer-to-consumer payments and interactions with merchants, are also rapidly expanding.

Stablecoin Payments are Currently Concentrated in Specific Regions

Geographically, stablecoin payment activities are not evenly distributed.

Nearly two-thirds of the transaction volume comes from Asia, primarily concentrated in Singapore, Hong Kong, and Japan.

North America accounts for about a quarter. Europe makes up about 13%. Latin America and Africa combined account for a very small portion, less than $1 billion.

Not Just Cross-Border Payments, But Local Currencies Running on Global Tracks

The development of non-dollar stablecoins is not limited to Europe; it is also emerging in emerging markets, with different driving forces behind it.

Brazil is a typical example. The monthly transfer volume of BRLA (a stablecoin backed by the Brazilian real) has grown from nearly zero at the beginning of 2023 to about $400 million per month by early 2026. The access to the PIX instant payment network has driven its popularity.

Although stablecoins are often described as cross-border tools, the proportion of cross-border activities has actually been declining rather than increasing.

Domestic transactions (stablecoin transfers occurring within the same country/region) have grown from about half of the payment volume at the beginning of 2024 to nearly three-quarters by early 2026. What does this mean? Stablecoins have not only established themselves as remittance or foreign exchange tools but have also become a local payment medium operating on global infrastructure.

Putting all these factors together, a clear picture emerges, although it is not what most people expected: many believed that stablecoins would focus entirely on cross-border transactions. Instead, they are becoming increasingly localized.

While the dollar remains the core anchor currency for the vast majority of stablecoins, stablecoins are by no means merely an export of the dollar. Non-dollar variants, such as euro-backed and Brazilian real-backed local currency stablecoins, are becoming increasingly popular.

Although peer-to-peer (C2C) stablecoin transfers far outnumber other types of payment flows, more and more use cases are shifting towards everyday consumption (C2B).

Data from each quarter is providing more evidence that stablecoins are evolving into a universal payment infrastructure. They are designed to be global, but in practice, they are becoming increasingly localized.

We are still in the early stages. But the shape of this system is gradually becoming clearer.