Coinbase’s x402 protocol, launched in May, has experienced a staggering increase of 10,000% in its transaction activities over the last month. This protocol enables AI agents to conduct transactions directly online using stablecoins.

Previously, Coinbase noted the x402 protocol addresses what they refer to as ’the internet’s first mistake’ by reviving the HTTP 402 payment required prompt, establishing a direct payment channel without the necessity of credit cards.

Between October 14 and 20, the number of x402 transactions approached 500,000, which reflects a dramatic increase of 10,780% compared to four weeks ago, according to analytics data from Dune. Another report recorded an unprecedented 239,505 transactions in a single day last Friday, with transaction volumes hitting a peak of $332,000 the previous day.

A report by tech-oriented venture capital firm a16z’s cryptocurrency segment predicts autonomous transactions might soar to $30 trillion by 2030. Without human involvement in managing API calls and transactions, autonomous AI could enable functionalities ranging from self-sufficient taxis to apps that permanently utilize stablecoins for data storage, as shared by Coinbase’s Kevin Leffew and Lincoln Murr in August.

Currently, AI agents are already trading cryptocurrency by analyzing market data and executing trades autonomously.

New Category for x402 Tokens on CoinGecko

With the x402 protocol gaining traction, developers are utilizing its framework to launch tokens, marking the emergence of x402-driven memecoins, as acknowledged by KuCoin Ventures on social media.

Due to the surge of interest, CoinGecko has initiated tracking for x402 tokens as a distinct ecosystem, which has quickly escalated to nearly $180 million market capitalization—up 266% in just the last 24 hours.

Ethereum: The Perfect Fit for HTTP 402

Leffew and Murr also highlighted that Ethereum is the most suitable blockchain for implementing HTTP 402 due to its inherent trustless settlement capabilities, which streamline invoice processing and dispute resolution.

“They need atomic payments, programmable policies, and composable wallets. Ethereum and stablecoins give them exactly that.”
“Eles precisam de pagamentos atômicos, políticas programáveis e carteiras compostas. Ethereum e stablecoins oferecem exatamente isso.”