Coinbase’s x402, an innovative online payment protocol, has recorded a staggering 10,000% increase in transactions over the past month. This protocol facilitates autonomous transactions for both AI agents and users, revamping the legacy payment systems of the internet.

Transaction Surge

According to data from Dune Analytics, x402 witnessed nearly 500,000 transactions between October 14-20, marking a 10,780% rise compared to the prior month. On Friday alone, record-setting 239,505 transactions occurred, alongside a peak transaction volume of $332,000 on Thursday.

Coinbase Transaction Surge Source: Brian Armstrong

The x402 protocol enables transactions using stablecoins, allowing AI and humans to request services, respond to payment prompts, and send verified payments without relying on credit cards. It aims to correct what Coinbase describes as the “first mistake” of the internet by implementing the HTTP 402 payment prompt.

Potential for Autonomy

Coinbase’s initiative aligns with foresight from a16z’s crypto arm in their 2025 State of Crypto report, suggesting that autonomous transactions could amass an estimated $30 trillion by 2030. This development streamlines various processes without requiring human intervention, paving the way for innovative applications including self-sufficient AI entities in various industries.

CoinGecko Recognition

Moreover, the rapid adoption of x402 has prompted CoinGecko to categorize x402 tokens as a new ecosystem, which has burgeoned into a market nearing $180 million. Additionally, developers are launching numerous memecoins powered by this technology.

x402 Ecosystem Source: CoinGecko

Conclusion

According to developers Leffew and Murr, the Ethereum blockchain is ideally suited for HTTP 402 functionalities due to its effective handling of invoices and chargeback disputes. They emphasized the importance of using Ethereum and stablecoins to provide atomic payments and programmable policies, ensuring an efficient transaction environment.