From cointelegraph by Vince Quill

Over 400 million crypto wallets have positive balances as the bull market continues to heat up, according to Chainalysis. The current rally is attracting institutional and retail users to crypto, particularly those transacting in dollar-pegged stablecoins.

According to a Dec. 5 report, the rise in wallets with a non-zero balance represents a clear trend that crypto adoption is steadily increasing, despite wallet addresses not necessarily indicating the number of people using a blockchain.

“It is clear that we’re experiencing a seismic shift in both perception and usage,” the Chainalysis team wrote.

Researchers for the onchain analysis firm also said the increased adoption during this market cycle was characterized by a “convergence” of the digital economy and traditional financial institutions entering the space via exchange-traded funds (ETFs) and related products.

Number of wallets with a non-zero balance. Source: Chainalysis

Related: New Chainalysis CEO expects greater clarity on stablecoins in 2025

Onchain transaction activity is dominated by stablecoins

The Chainalysis report highlighted the dominance of stablecoins in onchain transactions. According to the report, stablecoins represented between 50% to 75% of all onchain transactions since the start of 2024.

Stablecoins are typically thought of as fiat on-ramps and off-ramps for the crypto markets. However, a previous report from Chainalysis revealed that stablecoins are quickly growing as a store of value among individuals in emerging economies.

In Venezuela and much of Latin America, US dollar stablecoins are increasingly used for remittances and access to liquidity in jurisdictions without access to the currency or that have tight capital controls.

Stablecoin share of transaction volume in 2024. Source: Chainalysis

The utility of stablecoins was also noted by US Federal Reserve Governor Christopher Waller in an Oct. 18 speech at the Institute of Advanced Studies.