Amberdata 2024 Digital Asset Market Intelligence Report: Stablecoins

Welcome to Amberdata’s End-of-Year Report for 2024. At Amberdata, our mission is to shed light on these rapid developments by analyzing a broad range of metrics—from Gini Coefficients and holder distributions to UTXO analytics and funding-rate differentials—combining both on-chain and off-chain data. Whether you’re tracking whale flows for institutional insight, evaluating stablecoin liquidity for a DeFi project, or navigating the derivatives market as a retail trader, our platform provides the depth and breadth of intelligence needed for confident, data-driven decision-making.

In this report, we explore stablecoins’ key metrics and evolving market dynamics. This is the third installment in a comprehensive four-part series that began with our deep dive into Bitcoin in Part 1, continued with our analysis of Ethereum in Part 2, and concludes by examining exchanges and derivatives in Part 4. Download the full report here.

Stablecoins

Stablecoins upheld their critical role as the market’s liquidity backbone, facilitating seamless transactions across centralized and decentralized domains. In 2024, USDT, USDC, FDUSD, and DAI each carved out distinct user niches—from micro-transactions at the retail level to high-volume treasury moves by institutions. Shifts in issuance, redemption, and velocity illustrate how capital navigates between these tokens, often in response to short-term sentiment or yield advantages in DeFi. Transfer amounts also varied widely, with some stablecoins serving major corporate treasuries and others catering to frequent, lower-value transactions. Collectively, these behaviors demonstrate stablecoins’ adaptability in meeting a diverse array of trading, lending, and collateral needs.

Stablecoin Market Capitalization

Over the course of 2024, USDT, USDC, FDUSD, and DAI emerged as four of the most influential stablecoins, each with distinctive growth trajectories. USDT, for instance, expanded from roughly 39 billion in August 2023 to about 77 billion by December 2024, reinforcing its position as a liquidity cornerstone for both centralized and decentralized markets. USDC also rose steadily, climbing from near 24 billion to over 30 billion, indicating sustained appeal for a more regulatory-focused alternative. Meanwhile, FDUSD underwent one of the most dramatic increases, jumping from 300 million to over 2 billion toward the end of 2024—suggesting strong niche adoption, possibly in emerging DeFi platforms or regional exchanges. By contrast, DAI maintained a narrower range—generally between 3.1 billion and 3.5 billion—but still managed a moderate uptick to roughly 3.4–3.5 billion in the year’s final months, underscoring its consistent role in lending and collateralized protocols.

These surges at year’s end are particularly notable for DeFi participants. Higher market caps in stablecoins often translate into deeper on-chain liquidity, more robust yield opportunities, and lower slippage across trading pairs. For example, USDT’s surge provides broader trade coverage and margining potential, while FDUSD’s spurt could encourage specialized DeFi projects targeting new user bases. Liquidity providers benefit from the stable, fiat-pegged nature of these tokens, yet must remain vigilant about any shifts in issuer transparency or regulatory changes (as seen with BUSD, which plummeted from nearly 3 billion to under 100 million). 

Overall, these expansions signal an evolving ecosystem in which stablecoins are not merely transactional tokens but also the backbone of decentralized finance. With more capital locked in these assets, traders experience reduced volatility for on-chain swaps, while projects can scale liquidity pools and yield farms more effectively. However, the divergence in fortunes—some coins exploding in usage, others fading—reminds market participants to track risk factors like collateral models, governance structures, and policy updates to navigate the ever-changing stablecoin landscape.

Stablecoin Issuance

During 2023, stablecoin issuance for tokens like USDC, USDT, FDUSD, and DAI often surged by hundreds of millions or even billions in a single month. For example, USDC had an extreme net burn of about -8.9 billion in March 2023, while USDT expanded by roughly +5.0 billion in that same period, illustrating how capital can rapidly rotate between stablecoins. DAI experienced similar turbulence, swinging more than 300 million in either direction across various months. FDUSD, an emerging player, showed short but explosive mints, climbing by about +830 million by the end of 2023—a sign of strong initial adoption when price volatility was more pronounced.

In early 2024, net issuance activity remained large, January saw FDUSD mint around +800 million, with USDC surpassing +1.2 billion, both significant but more contained than the wild moves of the previous year. DAI was relatively muted at -25 million in that same span. Even by March 2024, FDUSD flipped to a net burn of -194 million, while USDC’s addition of around +272 million was notable yet far from the multi-billion extremes of 2023. These more moderate monthly changes suggest a maturing market that still delivers sizable liquidity injections without spiking pegging concerns.

For DeFi and broader ecosystem participants, these trends mean liquidity remains abundant and stable, with fewer shockwaves from abrupt mint/burn events. Traders benefit from deeper, steadier markets, as trust in stablecoins underpins lending, margin, and collateral usage. Although large monthly issuance or burns still happen—especially as FDUSD and DAI refine their roles—overall volatility is down compared to 2023. This stability typically fosters more predictable yields and robust on-chain activity, fueling confidence and long-term development in the stablecoin sector.

Stablecoin Average Transfer Amount

FDUSD stands out with an average transaction size of around $3.76 million, highlighting its appeal among large-scale or institutional participants conducting significant value transfers. DAI follows at $2.83 million, signaling that it, too, is frequently used in major collateral movements and advanced DeFi strategies. Meanwhile, BUSD and TUSD each hover near $150K and $130K, respectively, which suggests a mid-tier usage profile—often supporting treasury operations, liquidity rebalancing, or mid-sized trades. PYUSD’s average stands at about $78 K, indicating moderate flows that may cater to semi-professional traders or bridging activities between exchanges.

By contrast, both USDC and USDT post significantly lower average transfer amounts—approximately $27K for USDC and $12K for USDT. This gap underscores these coins’ widespread adoption by retail traders and smaller-scale wallets, who rely on them for everyday transfers, trading on centralized or decentralized platforms, and quick on- and off-ramps. USDT’s relatively modest average is especially striking given its massive market cap and transaction count, reflecting an extensive user base engaged in frequent but smaller transactions. USDC, too, sees broad usage among institutions and retail participants alike, bridging fiat and crypto with strong brand trust.

Stablecoin Ecosystem Senders, Receivers, Transactions and Totals

Stable coin transfers in 2024 showed notable fluctuations in volume and participation. In January, total transfer amounts stood near $154B, but by August, they surged to roughly $1.44T, reflecting robust demand for on-chain liquidity. Despite a decline in September to about $823B, December still ended at a significant $836B, underscoring continued interest in stable coin movement. While transaction counts initially hovered above 7M, they dipped to around 5.8M by October, indicating fewer overall transfers even as transferred value remained elevated.

Sender and receiver numbers exhibited steady gains through much of 2024, with senders growing from roughly 2.4M in January to above 2.7M in early fall, and receivers rising from around 2.8M to surpassing 3.1M at their peak. This rise points to broadening participation in stable coin usage, though the decline in transaction counts implies a shift toward larger individual transfers—possibly reflecting institutional or whale-level activities, especially around periods of heightened market volatility in August and September.

For DeFi, these trends highlight the essential role stable coins play in providing consistent liquidity and bridging traditional markets with digital ecosystems. Substantial on-chain transfer amounts can enhance lending pools and facilitate more robust exchange operations, although abrupt swings in volumes—like the summer rally and subsequent autumn slowdown—can pose liquidity challenges. Traders and protocols alike should monitor large-scale transfers, as they often influence stable coin supplies on popular DeFi platforms, affecting yields and spreads. Overall, the data suggests a maturing environment where stable coins remain pivotal for everyday transactions, cross-market settlements, and resilience against market disruptions.

Stablecoin Daily Average Number of Senders and Receivers by Asset

USDT clearly dominates daily usage, with around 66K receivers and 55K senders on average, dwarfing most other stable coins by a wide margin. USDC follows as the second-most used, at about 24K receivers and 21K senders per day, underscoring its broad appeal, especially for users who prioritize compliance or U.S.-based infrastructure. DAI stands out in the mid-tier range with roughly 810 receivers and 808 senders, often favored by DeFi participants seeking decentralized collateral. BUSD averages around 377 receivers and 392 senders, indicating moderate daily turnover, though notably smaller than the major two. TUSD remains a niche option, hovering at around 86 to 98 daily participants.

At the lower end, FDUSD, FEI, and HUSD all see under 25 participants per day, suggesting these coins cater to highly specialized use cases or niche communities. LUSD and MIM, at roughly 110 and 24 participants each, similarly reflect more limited appeal, likely centered on particular lending or yield strategies within DeFi. Meanwhile, PYUSD’s daily usage in the 200–300 range indicates growing traction, but it still trails far behind leading stable coins.

Implications for DeFi revolve around liquidity depth and user confidence. The more widely used a stable coin (as with USDT or USDC), the greater the on-chain liquidity it can support, which benefits protocols requiring large pools for lending or swapping. Smaller daily usage, by contrast, can limit a coin’s capacity to integrate seamlessly into multiple DeFi platforms. From a trader’s perspective, coins with larger daily sender/receiver counts generally offer tighter spreads and more predictable execution, reflecting deeper market confidence. Over time, stable coins with broader average participation may become the primary conduits for on-chain value transfer, further shaping liquidity dynamics across the decentralized ecosystem.

Stablecoin Velocity

Velocity, in the context of stable coins, refers to how frequently a token’s supply changes hands over a given period, effectively indicating how actively it circulates on-chain. A higher velocity generally means more frequent movement across wallets and protocols, hinting at greater transactional utility.

From the data shown, USDT and USDC continue to be major players, with velocities often landing in the 0.2 to 0.3 range. These two tokens’ steady usage for settlements, trading pairs, and DeFi collateral keeps their velocity relatively robust. Meanwhile, PYUSD, despite being smaller in scale, shows readings that hover around 0.1 to 0.2, suggesting it is gradually securing a foothold within the ecosystem. In contrast, these three overshadow the other major stable coins, reaffirming their dominant share in day-to-day usage. Because stable coins are often the backbone of on-chain liquidity, these observed (yet reasonably consistent) velocity values point to ongoing user engagement and transaction flow.

Although occasional fluctuations can arise due to normal market cycles or daily volume patterns, the fact that velocities remain in a moderate band implies healthy circulation and sustained demand. This is vital for DeFi lending protocols, yield farming opportunities, and broader digital-asset markets, where stable coins frequently serve as the anchor for liquidity and risk management. Ultimately, stable coin velocity helps illustrate how these assets underpin a significant portion of on-chain activity and trading, reflecting both participants’ confidence in them and the essential role they play in maintaining smooth market operations.

Conclusion

Overall, 2024 marked a year of both expansion and refinement in the stablecoin sector. The surge in market capitalizations—particularly for USDT, USDC, and the fast-rising FDUSD—reinforces the indispensable role these tokens play in bridging traditional finance with decentralized platforms. At the same time, divergent growth patterns highlight that not all stablecoins share the same trajectory; while FDUSD flourished, others like BUSD fell sharply, underscoring the dynamic and at times volatile nature of this category.

On-chain data shows a steady uptick in large transaction sizes for certain stablecoins (e.g., FDUSD, DAI), pointing to increasing institutional interest and specialized DeFi use cases. Meanwhile, retail-focused tokens like USDT and USDC continued to register high velocity and robust daily sender/receiver counts, confirming their broad appeal for everyday trades and settlements. This interplay—between institutional-scale movements and retail-driven transactions—maintains healthy liquidity across the ecosystem, albeit with periodic fluctuations tied to macroeconomic events or regulatory shifts.

Taken together, these findings emphasize that stablecoins have matured well beyond their initial function as simple trading pairs. Whether providing collateral in lending protocols or serving as a safe haven during volatile market cycles, stablecoins have become core instruments for both liquidity and risk management. As 2025 approaches, watch for ongoing innovation in collateral structures, yield optimizations, and regulatory frameworks, each of which will shape the trajectory of this pivotal market segment.

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