A new analysis from Coin Metrics, authored by Senior Research Associate Tanay Ved, finds that January’s record $8 trillion in adjusted stablecoin transfers was largely driven by $USDC activity on Base, with much of the spike related to decentralized finance (DeFi) mechanisms rather than payments.
Tanay Ved of Coin Metrics breaks down $USDC‘s $5.3 trillion monthly basis
Coin Metrics reported that adjusted stablecoin transfer volume reached a record $8 trillion in January 2026, with most of the growth concentrated in $USDC on Basic. The report, entitled “The curious case of $USDC on Basic,” and written by Tanay Ved, Senior Research Associate at Coin Metrics, attributes much of the expansion to activity on a single combination of assets and network.
According to Coin Metrics Network Data Pro, $USDC on Base, with an offering of roughly $4.1 billion, generated approximately $5.3 trillion in transaction volume in January alone. The company’s senior researcher notes that this translates into an unusually high speed compared to other chains, prompting a closer look at the underlying factors.
Coin Metrics data shows the increase was dominated by large transfers. Daily $USDC transactions above $100,000 on Base rose from less than 50,000 in mid-2025 to more than 450,000 at peak levels in January 2026. The report shows that transfers between $100,000 and $10 million represented approximately 90% of total transfer value, while the largest ranges, above $10 million, peaked intermittently.
To determine the source of this activity, the Coin Metrics analyst used analytics data from ATLAS $USDC balance updates on Base during a concentrated 10-day period in January. The top five addresses were linked to DeFi infrastructure, specifically liquidity provision on Aerodrome and lending and flash lending on Morpho.
Coin Metrics ATLAS data shows that WETH/$USDC The concentrated liquidity pool alone was responsible for an estimated 32%, or $6.4 trillion, of all $USDC adjusted transfer value on Base over the past year. Combined with cbBTC/ from Aerodrome$USDC pool and Morpho activity, these contracts represented a significant portion of flows associated with DeFi mechanisms rather than traditional payments.
The analysis explains that concentrated liquidity models or providers encourage frequent rebalancing. As price ranges shift, liquidity providers (LPs) pull back and rebalance $USDCwhich generates large inflows and outflows with limited net change in pool balances. At peak levels in January, the WETH/$USDC pool recorded more than $100 billion daily $USDC transfer volume, while daily net flows generally remained within $20 million.
Coin Metrics also identifies the flash loan activity on Morpho as another major contributor. A single flash loan transaction valued at $114 million $USDC illustrates how bots borrow and repay large amounts within a single atomic transaction, creating significant transfer volume without any net economic movement.
Source: Coin Metrics ATLAS & Network Data Pro and the latest report from Coin Metrics.
When dissecting Coin Metrics, he estimates that about 50% of January’s $5.3 trillion in revenue $USDC-adjusted transfer volume on Base can be attributed to the top three DeFi contracts. The remaining activity is still showing growth, but not on the scale suggested by daily peaks above $200 billion.
The researcher concludes that while stablecoin adoption continues to increase, transfer volume metrics may fundamentally aggregate different types of activity. Coin Metrics highlights the need for a more detailed classification to distinguish between liquidity management, arbitrage and real payment or settlement flows. It can be misleading to lump everything together as one specific type of classification.
Frequently asked questions ❓
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What did Coin Metrics report on stablecoin volume in January 2026?
Coin Metrics found that adjusted stablecoin transfer volume hit a record $8 trillion in January 2026, largely led by $USDC on Basic. -
How many $USDC the transfer volume took place at Base in January?
Coin statistics are displayed $USDC on Base generated approximately $5.3 trillion in adjusted transfer volume during the month. -
What caused the increase $USDC activity on base?
According to Tanay Ved and Coin Metrics, much of the growth came from DeFi activity on Aerodrome and Morpho, including liquidity rebalancing and flash lending. -
Why does Coin Metrics say transfer volume can be misleading?
Coin Metrics notes that newspaper volume can conflate DeFi mechanics with payment activity, making detailed classification essential for accurate interpretation.