Coinbase's x402 Protocol Sparks 10,000% Surge in Stablecoin Transactions

Coinbase's x402 Protocol Revolutionizes Online Transactions

Coinbase's innovative x402 payment protocol, launched in May, has dramatically increased stablecoin transaction activity by over 10,000% within a month. This protocol leverages the HTTP 402 code to streamline payments, allowing both AI agents and humans to transact seamlessly without traditional credit card usage.

Recent data from Dune Analytics highlights nearly 500,000 transactions between October 14 and 20, marking a significant rise. On Friday alone, 239,505 transactions were recorded, with a transaction volume of $332,000 on Thursday.

This surge coincides with insights from a16z's crypto arm, predicting autonomous transactions could reach $30 trillion by 2030, facilitated by agentic AI's ability to handle tasks like storage and computation without human input.

Rise of x402 Tokens

CoinGecko has recognized the growing impact of x402, listing related tokens as a new category. This market has expanded to nearly $180 million, with a 266% increase in the past 24 hours, fueled by new x402-powered token launches.

Ethereum: The Ideal Fit

Ethereum's trustless settlement layer is deemed perfect for HTTP 402, enhancing efficiency in handling invoices and chargebacks. It supports atomic payments, programmable policies, and composable wallets, essential for modern transaction systems.