Ethereum News Today: Coinbase's x402 Protocol Accelerates Autonomous Transactions, Fueling $30T Future Economy

Coinbase's experimental x402 payments protocol, designed to enable AI agents and humans to transact in stablecoins over the internet, has experienced a meteoric surge in activity, recording a 10,000% increase in October. The protocol, which revived the HTTP 402 "Payment Required" status code to facilitate instant on-chain transactions, processed nearly 500,000 payments in a single week from October 14 to 20, according to CryptoNews. This represents a 10,780% jump from the previous month and includes a peak of 239,505 transactions on Friday and $332,000 in volume on Thursday, MENAFN reported.

The x402 protocol allows users or AI agents to request services, receive a 402 prompt, and send signed stablecoin payments verified on-chain, bypassing traditional intermediaries like credit cards. This innovation aligns with growing interest in "agentic AI," autonomous systems capable of managing financial tasks. A16z Crypto's 2025 State of Crypto report projects such agents could drive $30 trillion in autonomous transactions by 2030, the CryptoNews coverage noted. Coinbase co-founder Brian Armstrong, who called the protocol "growing like crazy," highlighted its potential to redefine digital commerce, Cryptopolitan reported.

Ethereum's role in the x402 ecosystem has been pivotal. Developers Kevin Leffew and Lincoln Murr, who designed the protocol, emphasized Ethereum's trustless settlement layer as ideal for streamlining invoice processing, dispute resolution, and chargebacks, MENAFN reported. The protocol's adoption has also spurred a wave of x402-based token launches, with memecoins and new ecosystems amassing a market capitalization near $180 million, a 266% increase in 24 hours, Coinotag reported. CoinGecko now tracks these tokens as a distinct category, underscoring the protocol's growing influence.

However, the surge has drawn scrutiny. Some observers, including social media users, have questioned whether the transaction volume reflects artificial inflation, akin to manipulative tactics in blockchain networks. Despite this, industry enthusiasm remains strong. Suede Labs praised the protocol's development, calling it "exceptional," while Binance's integration of x402 support has expanded its accessibility, allowing users to trade compatible tokens via its wallet.

The PING token, a key catalyst in x402's growth, has attracted 31,000 new buyers and $3.5 million in daily trading volume, per Phemex data reported by Coinotag. Meanwhile, Coinbase's recent launch of "Payments MCP" further empowers AI agents to manage wallets, fiat on-ramps, and stablecoin payments using natural language commands, positioning the platform as a leader in agentic commerce.

As the x402 protocol continues to evolve, its success hinges on sustaining developer interest and addressing concerns about transaction authenticity. With Ethereum's infrastructure and Coinbase's ecosystem backing it, the protocol could play a foundational role in the $30 trillion autonomous transaction economy envisioned by 2030.