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In 2022, Stablecoin Settlements Will Surpass Credit Card Providers, Reaching $7 Trillion

David - Cryptocurrency Enthusiast

  • In 2022, the overall settlement volume for stablecoins exceeded $7 trillion, setting a new milestone

  • Except for Visa, the most recent volume record has surpassed those of the top credit card issuers

  • Peter Johnson predicted that stablecoins might even surpass Visa in the upcoming year

According to financial analytics platform CoinMetrics, stablecoins have reached a new record total settlement volume this year, surpassing all major credit card issuers except Visa. The data, which has been updated on the official page of cryptocurrency exchange Binance, shows that on-chain stablecoin settlements exceeded $7 trillion in 2022 and are projected to reach $8 trillion by year's end.

USDC, the leading stablecoin, claimed the second-highest settlement volume spot in 2022 with almost $2.9 trillion, more than twice the volume of the previous year. However, Tether's (USDT) acceptance has reportedly been stagnant, with a decline in settlement volume in 2022 to $3.5 trillion from $3.7 trillion in 2021. The stablecoins have outperformed Mastercard, Amex, and Discover in terms of settlement volume, according to Peter Johnson, Co-Head of Venture at Brevan Howard Digital.

Johnson predicts that stablecoins will not only outperform traditional currencies in 2023 but also probably surpass the aggregate volume of all four major card networks. However, Kimberly Adams, co-founder of Bridge Network, a cross-chain liquidity network provider, warns that comparing stablecoins to credit cards is like ‘comparing apples and oranges.’

According to CoinMetrics, seven other stablecoins, including USDC, also saw a 30% increase in trading volume. In contrast, the trading volume of several popular cryptocurrencies dropped by more than 90%. As stablecoins continue to grow in popularity and adoption, they present opportunities to trade crypto and investing in cryptocurrency. Investors should carefully consider their options for crypto storage and management, including crypto assets and coin holdings, as they consider their crypto market investment strategies.

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