The number of active cryptocurrency mobile wallet users has reached an all-time high, reflecting a growing shift from passive ownership to active engagement in the crypto space.

Record-Breaking Growth in Mobile Wallets

Mobile cryptocurrency wallets hit a new milestone, surpassing 36 million users in the fourth quarter of 2024, according to Coinbase’s latest crypto market report, published on 29 January. This surge highlights increasing mainstream adoption as more passive holders begin actively interacting with blockchain-based applications.

Daren Matsuoka, a data scientist at a16z Crypto, noted the significance of mobile wallets in expanding user engagement. “Mobile wallets can play a critical role in turning passive crypto owners into active crypto users,” he said.

Despite this record growth, mobile wallet users still account for only a fraction of the global crypto community. The 2024 Cryptocurrency Ownership report by Triple-A estimates that there are approximately 560 million cryptocurrency holders worldwide.

Industry experts predict that the number of crypto holders will continue to rise. Pavlo Denysiuk, CEO of crypto payments firm Lunu, expects the global figure to triple within the next two years, given the current rate of adoption.

Stablecoins: Crypto’s “Killer App”

Stablecoins emerged as the standout sector in 2024, playing a crucial role in market liquidity and cross-border transactions. Coinbase’s report highlighted stablecoins as a transformative force in the industry.

“Behind this growth lies a simple but powerful fact: stablecoins can make it faster and cheaper for both businesses and individuals to move money around the globe,” the report stated.

Stablecoin supply increased by over 18% in the fourth quarter of 2024, nearing the $200 billion mark by year’s end. This surge often signals growing investor interest, as stablecoins are the primary bridge from traditional currencies into crypto markets.

Trading volumes for stablecoins soared over threefold in 2024, reaching $30 trillion for the year. December alone saw over $5 trillion in stablecoin transactions, coinciding with Bitcoin’s historic rally past $100,000. Inflows of stablecoins to crypto exchanges also peaked, hitting a record monthly high of $9.7 billion on 21 November—just weeks before Bitcoin set its all-time high.

While stablecoins continue to gain traction, regulatory clarity remains a key challenge. Coinbase’s report emphasised the importance of clear regulations to promote broader financial inclusion. “The stage has now been set for broader adoption of stablecoins in remittances, digital capital markets, and financial services for the unbanked or underbanked,” the report added.

Stablecoins Challenging Fiat in East Asia

Stablecoins are beginning to challenge the dominance of traditional fiat currencies, particularly in parts of East Asia, where economic instability is pushing people towards alternative financial solutions.

According to Chainalysis, East Asia became the world’s sixth-largest crypto economy in 2024, accounting for 8.9% of global cryptocurrency transactions between June 2023 and July 2024.

Maruf Yusupov, co-founder of Deenar, a gold-backed stablecoin, attributed this trend to persistent fiat devaluation and high inflation rates in emerging economies. “In most emerging markets, stablecoins are gradually replacing fiat because of lower barriers to entry, low cost, and ease of use. If the current adoption trend is sustained, the asset might fuel lower patronage to traditional banks as we have it today,” he said.

Cross-border remittances remain a key driver of stablecoin adoption in the region. Bank-based international transfers carried an average fee of 7.34% in 2024, according to Statista, making stablecoins a more affordable and efficient alternative.

East Asia alone received over $400 billion in on-chain value between June 2023 and July 2024, further solidifying stablecoins’ role as a dominant financial tool in the region.