Stablecoins are disrupting the global financial system, impacting remittances, P2P payments, and currency trading. Tether’s dominance has grown to over 61 billion USDT on Tron and over 54 billion USDT on Ethereum.
Reaching a critical tipping point, stablecoins show evidence of disrupting traditional global capital flows. Recent data from Artemis shows that the third quarter (Q3) of 2024 sees notable patterns across foreign exchange (FX), remittances, cross-border payments, and peer-to-peer (P2P) activity.
As stablecoins begin to transform financial infrastructure, their evolution is no longer a prediction of the future, but a current reality. Stablecoins are great tools in global finance, as disruption is most evident in areas such as currency trading, remittances, and P2P transactions.
The Q3 Stablecoin Update shows that stablecoins are at a tipping point that will disrupt all forms of capital movement. We are seeing changing trends across FX, remittances, cross-border payments and P2P.
How stablecoins enable digital finance 🧵 https://t.co/uNA2Glh6ms
— Artemis (@artemis__xyz) October 22, 2024
Stablecoins will fuel DEX growth and revolutionize remittances between the US and Mexico
EURC, Circle’s euro-backed stablecoin, shows how decentralized exchanges (DEXs) are rapidly gaining traction in currency trading. Stablecoins like EURC are starting to disrupt established currency markets as DEX trading volumes explode, especially in regions where fiat currencies are suffering from inflationary pressures and liquidity constraints. Masu.
Source: Artemis
This graph shows how stablecoins are steadily becoming a necessary part of the currency trading ecosystem, rather than just a speculative tool.
One of the world’s largest remittance routes, the U.S.-to-Mexico remittance route has brought incredible changes to the remittance industry, with annual remittances now exceeding $1.2 billion and showing no signs of slowing down.
This market explosion reflects the fact that stablecoins, particularly USD-denominated tokens, offer a more affordable and faster means of cross-border money transfers. Workers who send money to their families clearly benefit from being able to avoid traditional banking systems and associated costs.
P2P trading volume using Tether (USDT) exceeds trading volume in the Americas in Europe, the Middle East, and Africa (EMEA), suggesting stablecoin acceptance is rapidly expanding beyond North America. I am.
Source: Artemis
Asia dominates the use of P2P stablecoins, raising the question of whether EMEA will eventually be able to catch up in terms of transaction volume. Stablecoins have the potential to provide the backbone for financial transactions in regions without advanced banking systems while this change occurs.
Cryptocurrency exchanges and self-custody options redefine the global financial system
Cryptocurrency exchanges such as Binance and OKX are now considered the “global banks” of the new financial era. These platforms have the highest number of stablecoins, suggesting the growing importance of stablecoins in providing liquidity for transactions and investments around the world.
Source: Artemis
This increase in stablecoin ownership shows that crypto exchanges are replacing the traditional position held by large banks as important intermediaries in global finance.
Self-custody options are also increasing for stablecoin users, giving them more control over their funds and reducing their dependence on external custodians. This shift to decentralized financial management is empowering consumers and changing the way they interact with digital currencies.
Additionally, rapidly bridging the gap between traditional payment systems and stablecoins is the acceptance of credit card usage through sites like Gnosispay and Monerium. Therefore, stablecoins allow users to use their balances for daily purchases, making them very convenient and accessible.
Furthermore, the volume of addresses containing stablecoins valued at over $10,000 continues to reach record highs, highlighting the growing confidence in these digital assets as wealth repositories and means of transaction. It has become.
Source: Artemis
Meanwhile, CNF previously reported that USDT’s market value exceeded $120 billion, confirming its dominance in the global stablecoin and digital finance industry.
According to the data, 54.48 billion USDT (45.34%) is in circulation on Ethereum, and more than 61.49 billion USDT (51.17%) is currently passing through the Tron network.
