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Coinbase’s x402 protocol sees 10,000% surge in payments

AI-Driven Stablecoin Payments Surge 10,000% with Revived HTTP 402 Protocol on Ethereum Blockchain

  • An online payments protocol enabling AI agents to transact in stablecoins on the internet has increased transaction activity by over 10,000% in one month.
  • The protocol revives the HTTP 402 “Payment Required” standard, allowing direct payments without credit cards.
  • Nearly 500,000 transactions occurred in one week, with record daily transaction counts and volumes recently reported.
  • A new ecosystem of tokens using this protocol has emerged, reaching a market value near $180 million and growing rapidly.
  • Ethereum‘s capabilities make it the preferred blockchain for implementing this payment protocol effectively.

In May, Coinbase introduced an online payments protocol that allows AI agents and humans to make direct stablecoin payments over the internet. It reactivates the internet communication standard HTTP 402, or “Payment Required,” to support seamless payments during website or app use without relying on credit cards.

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Between October 14 and 20, transaction activity on this protocol reached nearly 500,000, marking a 10,780% increase from the previous month, according to data from Dune Analytics. On October 19, the protocol set a record with 239,505 transactions, while the day before saw a peak transaction volume of approximately $332,000.

This payment system enables AI to handle payments autonomously during digital interactions. Development team members explained that AI agents can now execute transactions automatically by responding to HTTP 402 prompts with signed stablecoin payments, which are instantly verified. Such autonomous operations could support applications like self-driving taxis paying their own expenses or apps storing data using stablecoins.

Developers have begun launching new tokens based on this protocol, fueling a surge in memecoin projects. As a result, CoinGecko has recognized these tokens as a new market category, which has surged 266% in value over 24 hours to close to $180 million.

Ethereum stands out as the blockchain best suited for this protocol because of its trustless settlement system. Its features allow for atomic payments, programmable policies, and interoperable wallets, creating more efficient invoicing and reducing disputes and chargebacks compared to traditional methods. “Ethereum and stablecoins give them exactly that,” said key developers involved in the project.

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For more details, see Dune Analytics transaction data, Dune Analytics daily records, and CoinGecko x402 token tracking.

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