Over 400 million crypto wallets hold positive balances amid bull market surge
Over 400 million crypto wallets hold positive balances amid bull market surge
Over 400 million cryptocurrency wallets now hold a positive balance, according to a Dec. 5 report by Chainalysis. This milestone reflects the ongoing growth in crypto adoption, fueled by increasing interest from both institutional and retail investors.
The report attributes the surge in part to rising usage of dollar-pegged stablecoins, which dominate onchain transactions and act as vital on-ramps for the digital economy.
Chainalysis researchers noted that while wallet addresses do not necessarily represent individual users, the data indicates a significant shift in perception and utility of cryptocurrencies. “It is clear that we’re experiencing a seismic shift in both perception and usage,” the Chainalysis team wrote.
The report also highlighted a convergence between the digital economy and traditional financial institutions, particularly through exchange-traded funds (ETFs) and related investment vehicles.
Stablecoins lead onchain transaction volume
Stablecoins accounted for 50% to 75% of all onchain transactions in 2024, underscoring their growing role in the global economy. Originally designed as fiat on-ramps for crypto markets, stablecoins are now increasingly used as a store of value and for remittances, especially in emerging economies.
In regions like Venezuela and Latin America, dollar-pegged stablecoins have become essential for accessing liquidity and navigating strict capital controls. Their utility has been recognized by major institutions. U.S. Federal Reserve Governor Christopher Waller praised stablecoins in October for their potential to reduce cross-border settlement costs, while the U.S. Treasury’s Borrowing Advisory Committee noted their contribution to boosting demand for Treasury bills.
The integration of stablecoins into traditional finance signals a broader acceptance of digital assets as essential components of the global financial system. With institutional adoption through ETFs and increasing use cases for stablecoins, the next phase of crypto growth could further cement its role in both emerging and developed economies.
Read also: FDIC issues 'pause letters' to banks, halts crypto activities amid regulatory uncertainty
