On-chain activity in Coinbase’s x402 protocol has increased more than tenfold over the past month, according to Dune data.
From October 20 to 26, a record number of 932,440 transactions were processed, amounting to $913,888. In comparison, the entire month of September saw 46,574 transactions.
The number of unique buyers of x402 assets reached 61,290, while sellers numbered 372.
x402 is a tool for online payments designed for transactions with stablecoins. It also enables AI agents to conduct autonomous transactions.
Coinbase introduced the project in May. The solution is based on the HyperText Transfer Protocol (HTTP), which is used for data exchange between web browsers and servers.
Why is activity on x402 increasing?
According to KuCoin Ventures, developers have begun using the protocol to launch meme coins. Data aggregator CoinGecko has already added a category for coins created on the x402 platform.
The sector’s market capitalization rose by 345% in a day, reaching $770 million. EingenCloud remains the leader in volume with a market value exceeding $115 million.
“Developers are using the x402 architecture for direct token issuance. […] x402 has become a working tool — the community is turning it into a launchpad killer. New crazy combinations are ahead,” noted KuCoin Ventures.
Abstract project programmer Jarrod Watts explained the interest in the protocol by its advantages over traditional payment methods. According to him, the latter require constant human involvement: registration, use of bank cards, and management of API keys.
x402 removes these barriers by embedding payment directly into HTTP requests.
— Jarrod Watts (@jarrodWattsDev) October 25, 2025
Use Cases
Discussing the emergence of a range of coins based on x402, the expert highlighted three main application scenarios:
- Specialized tokens of API providers. Some services may require payment in their own tokens instead of stablecoins.
- Facilitator assets. Payment infrastructure providers may launch their own tokens for service payments.
- Speculation. A repeat of the previous AI hype scenario, where coins with minimal practical value reached billion-dollar capitalizations.
“I suspect we will see a new wave of AI coins in the coming weeks. Again, they are likely to be utterly meaningless, but ‘would you rather be right or rich?'” he wrote.
The sharp rise in activity on x402 also coincided with the publication of a16z’s 2025 report. In it, experts identified agent-based artificial intelligence as a key trend, forecasting an increase in transaction volume to $30 trillion by 2030.
Back in August, members of the American crypto exchange’s development team, Kevin Leffew and Lincoln Murr, noted that AI agents would become the main users of Ethereum.