Coinbase’s x402 protocol sees 10 000% growth as AI wallets take off

Transaction activity on the Coinbase-launched protocol for AI-powered stablecoin payments, x402, skyrocketed over 10,000% last month. Designed for AI agents and users to transact autonomously, the open-source protocol has attracted widespread attention from developers and investors exploring its potential to transform online payments.

According to Coinbase, the system enables direct payments from AI or humans on websites and apps. A request triggers an HTTP 402 “Payment Required” alert, which sends a signed stablecoin payment that x402 checks automatically—no credit cards are involved.

Coinbase’s x402 recorded nearly 500,000 transactions in seven days

According to Dune Analytics, x402 saw nearly 500,000 transactions from October 14 to 20, representing a 10,780% increase compared to the previous four weeks. Transaction activity also hit new highs on Friday at 239,505, and Thursday posted a record $332,000 in volume. Coinbase’s co-founder and CEO Brian Armstrong confirmed, “x402 growing like crazy.”

But one X user countered that the reported surge in activity may be artificial, likening it to how blockchain transactions can be easily manipulated to inflate usage.

Nonetheless, many congratulated the platform, being rather pleased with its achievements, including Suede Labs. It commented, “Exceptional—great work by everyone who brought this to life with such energy and conviction. The enthusiasm behind it says everything about where we’re headed. Suede Labs won’t be missing a moment.”

Earlier this week, a16z’s crypto division cited agentic AI in its 2025 State of Crypto report, anticipating $30 trillion in autonomous transactions by 2030.

In August, Kevin Leffew and Lincoln Murr of Coinbase noted that they believed agentic AIs could autonomously manage APIs, storage, and computation, enabling everything from self-driving taxis paying via stablecoins to apps permanently storing data with stablecoins.

Currently, AI agents are only capable of limited autonomous crypto trading, reviewing market data, executing trades, and managing portfolios without human oversight. 

Leffew and Murr believe Ethereum is the ideal blockchain for HTTP 402 

According to KuCoin Ventures on X, x402’s development is allowing developers to mint their own tokens outright and send memecoins into an ever-increasing frenzy. The x402 ecosystem is now worth nearly $180 million and has grown by 266% in the last 24 hours, according to CoinGecko.

Leffew and Murr also explain that Ethereum is the ideal blockchain for HTTP 402 because its trustless settlement layer streamlines invoice processing and dispute resolution, including chargebacks. 

Additionally, analysts claim the PING token has catalyzed the platform’s growth. PING became a key player in x402 testing, recording 31,000 new buyers and $3.5 million in daily trading volume, Phemex data shows. However, critics questioned the asset’s involvement, claiming that the token is risky and speculative.

Binance’s addition of x402 support brought the protocol to a wider audience, allowing users to trade compatible tokens through the exchange’s wallet. Plus, the Binance integration helped support the legitimacy of the platform and the assets it offers.

Meanwhile, Coinbase has recently unveiled “Payments MCP,” a new system that enables large language models, such as Claude, Gemini, and other AI agents, to handle wallet operations, fiat on-ramps, and stablecoin payments through natural language commands. 

As previously reported by Cryptopolitan Payments, MCP offers AI models the same blockchain tools that human users would utilize, including wallets, transaction services, and stablecoin transfers.

According to Dan Kim, Coinbase’s vice president of business development and listings, and Erik Reppel, head of engineering for the Coinbase Developer Platform, the system allows AI agents to participate in “agentic commerce.”

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