TLDR
- Coinbase x402 recorded 500,000 transactions between October 14 and 20.
- x402 daily transaction volume hit $332,000 on October 17, setting a record.
- x402 token ecosystem reached $180 million in value, up 266% in 24 hours.
- Transaction activity on x402 rose 10,780% compared to four weeks earlier.
Coinbase’s x402 protocol has seen a rapid surge in adoption, with transaction activity increasing over 10,000% in the past month. The protocol, introduced earlier this year, enables autonomous payments using stablecoins through the HTTP 402 status code. Nearly half a million transactions were recorded in one week, showing rising interest in automated financial interactions online. This spike has also fueled the creation of new tokens built on the x402 framework.
Rapid Growth in x402 Activity
Coinbase’s x402 protocol recorded close to 500,000 transactions between October 14 and October 20, according to data from Dune Analytics. This marked a 10,780% rise compared to transaction levels seen four weeks earlier.
Transaction counts peaked further on October 18, with a record 239,505 transactions in a single day. The following day, transaction volume reached $332,000, setting another record for the protocol.
x402 was introduced by Coinbase in May as a solution to integrate internet-native payments using the HTTP 402 status code. This code, which had remained unused in web standards, is now being used to request payment before a resource is delivered.
How x402 Works for Web Payments
The protocol allows both AI agents and humans to make payments directly through websites or applications. When a user or agent makes a request, they receive an HTTP 402 “Payment Required” response. A stablecoin payment is then signed and sent, and x402 automatically verifies it.
This removes the need for credit card processing and offers a direct payment layer on the internet. It also reduces the steps required for verifying and accepting transactions online.
According to Coinbase engineers Kevin Leffew and Lincoln Murr, Ethereum is well-suited for x402 because of its trustless and programmable design. “They need atomic payments, programmable policies, and composable wallets. Ethereum and stablecoins give them exactly that,” they stated.
Rise of x402 Tokens and Ecosystem Expansion
Developers have started using the x402 framework to launch new tokens. Many of these are memecoins that are gaining quick traction within crypto communities.
CoinGecko recently added a new category for x402 tokens as the ecosystem expanded. The market value of x402 tokens reached around $180 million and rose 266% within 24 hours.
KuCoin Ventures also reported on social media platform X that x402 is powering a wave of new token launches. These tokens are native to the x402 system and are being used in various experimental projects.
Industry Interest and Future Use Cases
Interest in autonomous payments has grown beyond Coinbase. Venture capital firm Andreessen Horowitz’s crypto arm discussed the concept in its 2025 State of Crypto report. It forecasted that autonomous transactions could reach $30 trillion by 2030.
The report referred to “agentic AI,” where digital agents can make and manage payments on their own. These agents could manage costs for services like storage, transportation, and computation using stablecoins without needing human input.
Some AI agents are already performing financial tasks such as analyzing markets, placing trades, and managing portfolios. These systems use real-time data and execute strategies without manual involvement.
Coinbase said x402 helps correct the early internet’s design, which lacked a built-in payment method. By enabling direct payments using stablecoins, x402 fills that gap.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
