Stablecoin Transactions Surge 19.8% to $1.5 Trillion in July on GENIUS Act and Crypto Rally

The total on-chain stablecoin transaction volume hit a record high of $1.5 trillion in July, driven by the enactment of the U.S. GENIUS Act and strong performance from major cryptocurrencies like Bitcoin and Ethereum [1]. This marked a 19.8% increase from June’s $1.26 trillion and surpassed the previous peak of $1.4 trillion in August 2024. The rise in activity reflects growing adoption of stablecoins as investors seek non-volatile assets amid crypto’s recent bull run [1].

Circle’s USDC led the market, accounting for nearly half of the total volume with $748 billion in transactions [1]. Tether’s USDT, the largest stablecoin by circulating supply, followed with $420 billion, while the decentralized DAI stablecoin secured the third position with $261 billion [1]. The surge in usage highlights the role of stablecoins in facilitating liquidity and cross-border transactions, especially as major financial institutions begin exploring their potential.

Bitcoin reached a record high of over $123,000 in July, while Ethereum approached $4,000, triggering increased on-chain activity as investors moved funds into stablecoins for hedging and liquidity management [1]. This trend was further supported by the passage of the GENIUS Act, which was signed into law on July 19. The legislation introduced clear regulatory guidelines, including reserve requirements and Federal Reserve oversight, reducing uncertainty and fostering trust in the sector [1]. The act is seen as a major step toward legitimizing stablecoins and integrating them into the broader financial system.

The regulatory clarity provided by the GENIUS Act has encouraged prominent institutions, such as JPMorgan and Meta, to explore stablecoins for cross-border payments and other financial services [1]. This growing institutional interest, combined with the sector’s record transaction volume, has pushed stablecoin market capitalization beyond $278 billion [1]. Analysts view this as a sign of maturation in the digital asset space and a potential catalyst for wider adoption.

The stablecoin sector’s rapid growth is supported by real-world demand and policy developments, positioning it as a key component of the evolving crypto ecosystem. As more companies adopt stablecoins for payments and financial services, their role in global finance is expected to expand, further solidifying their market presence [1].

Source: [1] US GENIUS Act sparks stablecoin boom with record $1.5 trillion transaction volume in July (https://cryptoslate.com/us-genius-act-sparks-stablecoin-boom-with-record-1-5-trillion-transaction-volume-in-july/)