Stablecoin supply has roughly doubled since January 2024, and entity-adjusted transaction volume has grown fourfold to fivefold over the same period. Monthly adjusted stablecoin transaction volume has risen from a few hundred billion dollars in 2023 to well above $1 trillion in recent months, according to data from Coinbase and Visa's Economic Empowerment Institute.
Why Velocity Matters
The velocity of stablecoins in Q4 2025 was 13.56, compared to US M1 velocity of 1.65 over the same period, according to Visa's Economic Empowerment Institute. Velocity measures how often a unit of currency is used in transactions within a given time frame. A higher number means each dollar is changing hands more frequently.
But the comparison is stark for a reason. M1 velocity tracks spending on goods and services — the kind of economic activity that drives GDP. Stablecoin velocity, on the other hand, includes investment, trading, liquidity management, and settlement. That's a much broader set of uses, and it explains part of the gap.
From Supply to Throughput
Stablecoins are transitioning from a model where supply indicated demand to a model where supply acts as installed capacity and throughput shows actual utilization. In other words, the amount of stablecoins in circulation is less important than how fast they're moving through the system.
Coinbase's figures use entity-adjusted volume, which filters out internal, bot-driven, and non-economic transfers. That gives a clearer picture of real economic activity. Even after that adjustment, the growth is dramatic.
What the Numbers Mean
The data suggests stablecoins are no longer just a niche tool for crypto traders. They're becoming infrastructure for payments, settlements, and liquidity management across the broader financial system. The velocity figure of 13.56 indicates that each stablecoin dollar is being used more than eight times as often as a traditional M1 dollar, even if the types of transactions differ.
Visa's Economic Empowerment Institute calculated the stablecoin velocity figure, highlighting how traditional financial players are paying close attention to the trend. The institute's work underscores the growing overlap between crypto-native activity and mainstream finance.
As stablecoin usage continues to expand, the question remains how regulators and traditional financial institutions will adapt to this new form of money movement. The next data point to watch is whether velocity continues to climb or stabilizes as the market matures.
