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Bots Drive 70% of Stablecoin Transactions in 2024, Reshaping Crypto Market Dynamics

3 February 2025 Daily Feed Tags: , , ,
Bots Drive 70% of Stablecoin Transactions in 2024, Reshaping Crypto Market Dynamics

Bots Dominate 70% of Stablecoin Transactions in 2024, Reshaping the Crypto Market

In 2024, automated trading bots drove 70% of stablecoin transactions, significantly influencing the market. USDC emerged as the leader in bot-driven transactions, while Coinbase’s Base network overtook Ethereum in transaction volume during the fourth quarter.

  • 70% of stablecoin volume driven by bots
  • USDC leads in bot-driven transactions
  • Base surpasses Ethereum in Q4

Stablecoins are cryptocurrencies designed to maintain a stable value, often pegged to a fiat currency like the US dollar. They serve as a bridge between traditional finance and the crypto world, enabling users to transact without the volatility of other cryptocurrencies. In 2024, the stablecoin market saw a total transfer volume of $27.6 trillion, surpassing Visa and Mastercard combined by 7.68%. This growth underscores the increasing adoption of stablecoins for various financial activities.

A survey by CEX.IO, utilizing data from Allium, revealed that automated trading bots were responsible for a staggering 70% of the total stablecoin transaction volume in 2024. This dominance quadrupled from the previous year, with unadjusted transactions, which include bot-driven activities, increasing from 80% to 90%. Unadjusted transactions refer to all stablecoin movements, including those driven by bots, while adjusted transactions focus solely on human-driven activities.

USDC, in particular, dominated the unadjusted transaction category, accounting for over 65% of the volume. As CEX.IO stated, “USDC dominated the unadjusted category, making up over 65% of the volume. This underscores the fact that much of USDC’s transaction activity was driven by bots.” This surge in bot activity not only reshaped the stablecoin market but also led to significant shifts in the blockchain ecosystem.

Networks like Solana and Base, where USDC’s supply is significant, saw unadjusted transactions represent over 98% of their stablecoin activity by December 2024. Due to this intense bot activity, Coinbase’s layer-2 network, Base, even managed to surpass Ethereum in total stablecoin transaction volume during the fourth quarter. CEX.IO reported, “Networks such as Solana and Base, where USDC supply dominates, saw unadjusted transactions represent over 98% of stablecoin activity as of December 2024. Due to the bot activity, Base even managed to surpass Ethereum in total stablecoin transaction volume in Q4 2024.”

While bots have undeniably driven the stablecoin market, the landscape looks quite different when adjusted for bot activity. In 2024, the adjusted stablecoin transfer volume doubled, yet it still lagged behind the explosive growth of bot-driven activity. Tether (USDT) emerged as the leader in organic transactions, accounting for over 68% of the adjusted volume. Meanwhile, PayPal’s PYUSD made significant strides, tripling its share in adjusted transactions, though it still represented less than 2% of organic transactions.

The dominance of bots in the stablecoin market raises questions about their role in the broader cryptocurrency ecosystem. While bots enhance efficiency by facilitating arbitrage, executing smart contract transactions, and covering gas fees, they also pose risks of market manipulation. As CEX.IO noted, “While bots may manipulate markets, they also enhance efficiency by facilitating arbitrage, executing smart contract transactions, and covering gas fees.”

The stablecoin landscape continues to evolve, with yield-bearing stablecoins like Ethena’s USDe seeing their market share increase by over 40 times to 2.88%. The surge in tokenized U.S. Treasuries and the growth of RWA-focused stablecoins like USD0, which reached a market cap of $1.7 billion, further illustrate the broadening use cases of stablecoins. However, the tightening regulatory environment for yield-bearing stablecoins poses significant challenges that could shape the future of this market.

As we look to the future, the role of bots remains a double-edged sword. CEX.IO predicts continued growth in stablecoin usage in DeFi, trading, and cross-border payments, especially post-halving cycles, which historically increase trading volumes. While the bot-driven surge has reshaped the market, it also raises questions about the future role of human traders in the crypto ecosystem. Are we moving towards a fully automated trading world?

Key Takeaways and Questions

  • What percentage of stablecoin transaction volume was driven by bots in 2024?

    70% of the stablecoin transaction volume in 2024 was driven by bots.

  • Which stablecoin dominated the unadjusted transaction category?

    USDC dominated the unadjusted transaction category, accounting for over 65% of the volume.

  • Which blockchain network surpassed Ethereum in stablecoin transaction volume in Q4 2024?

    Base surpassed Ethereum in stablecoin transaction volume in Q4 2024.

  • What would the stablecoin transaction landscape look like without bot activity?

    Without bot activity, the stablecoin transaction landscape would be significantly different, with adjusted volumes lagging behind the growth of bot-driven activity.

  • Which stablecoin led in organic transactions in 2024?

    Tether (USDT) led in organic transactions, accounting for over 68% of adjusted volume.

  • Which stablecoin showed the highest growth in adjusted transactions in 2024?

    PayPal’s PYUSD showed the highest growth in adjusted transactions, tripling its share.