Stablecoin transfer volume falls from $3.6T to $1.2T

The stablecoin market, despite modest growth this year, has seen a sharp decline in transfer volumes.

According to data from Artemis Terminal, stablecoin transfer volume has fallen significantly from a peak of $3.6 trillion in May to $1.2 trillion so far in October.

This trend highlights a shift in market behavior, even as the overall value of stablecoins has increased to $172.7 billion, representing a 27.93% rise since January.

The vast majority of stablecoins, around 83.82%, are circulating on Ethereum (CRYPTO:ETH) and Tron (CRYPTO:TRX), with Ethereum holding 48.9% of the supply and Tron accounting for 34.92%.

Other blockchain platforms, including BNB Chain (CRYPTO:BNB), Arbitrum (CRYPTO:ARB), and Base, make up smaller portions of the market.

Despite the growth of the sector, the significant drop in transfer volume indicates changing market conditions.

Data shows that out of the $1.2 trillion transferred this month, $309.2 billion was facilitated on Ethereum, while $282.9 billion was handled on Tron.

Combined, these two networks were responsible for nearly half of October’s stablecoin transfers.

The reduction in volume is notable, given that stablecoin transfers were high earlier in the year, particularly in March through May, during periods of higher Bitcoin (CRYPTO:BTC) and cryptocurrency prices.

Several factors are contributing to this decline, including a slowdown in speculative trading and increasing regulatory pressures.

As markets become steadier, traders often limit fund transfers, reducing the overall movement of stablecoins.

Additionally, yield-bearing stablecoins like USDE (CRYPTO:USDE) are gaining popularity, encouraging investors to hold them as long-term assets rather than using them for frequent transactions.