More than 400 million crypto wallets have non-zero balance – chain analysis
According to Chinalysis, more than 400 million crypto wallets have a positive balance due to the increasing bull market. The current rally is attracting institutional and retail users to crypto, especially those trading in the dollar-pegged stablecoin.
According to a December 5 report, the increase in non-zero balance wallets shows a clear trend that crypto adoption is steadily increasing, even though wallet addresses are not necessarily indicative of the number of people using the blockchain.
“It is clear that we are experiencing a seismic shift in both perception and usage,” the Chinalysis team wrote.
The researchers of the Onchain analysis firm also note that the increasing adoption in this market cycle is due to the “convergence” of the digital economy and traditional financial institutions entering the space through exchange-traded funds (ETFs) and related products.
Number of wallets with non-zero balance. Source: Chain analysis
Related: New Chainalysis CEO expects more transparency on stablecoins by 2025
Onchain transaction activity is dominated by Stablecoins.
The Chainalysis report highlighted the dominance of stablecoins in onchain transactions. According to the report, stablecoin will represent 50% to 75% of all onchain transactions by early 2024.
Stablecoins are commonly thought of as fiat on-ramps and off-ramps for crypto markets. However, an earlier report from Chainalysis found that stablecoins are growing as a store of value among individuals in fast-growing economies.
In Venezuela and much of Latin America, stablecoins of the U.S. dollar are increasing access to remittances and money supply for funds that do not have access to the currency or have strict capital controls.
Stablecoin transaction volume share in 2024. Source: Chainalysis
The benefits of Statcoins were mentioned by US Federal Reserve Governor Christopher Waller in his speech at the Institute for Advanced Study on October 18.
Waller told the audience that a stablecoin could benefit the existing financial system by reducing cross-border settlement costs.
The US Treasury Debt Advisory Committee made a similar observation in its October 30 report. The committee pointed out how dollar-denominated stablecoins would increase demand for Treasury bills and increase the efficiency of the issuance of Treasury assets.
In an Oct. 29 letter to US lawmakers, Paxos CEO Charles Cascarla argues that a stable coin is essential to the future of the dollar and a way to maintain its relevance in the digital economy.
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