Coinbase x402 protocol logs 50,000 transactions—up 10,000%

Transaction volume hits record highs

Between October 14 and 20, x402 logged nearly 500,000 transactions. Data from Dune Analytics shows activity surged even higher on Friday with a record 239,505 transactions in a single day.

Thursday posted a record $332,000 in transaction volume. The growth has brought in developers who are now using x402’s design to launch tokens directly on the protocol.

KuCoin Ventures posted on X that the spike is fueling a wave of x402-powered meme coin launches. The protocol’s simple payment flow has made it attractive for rapid token deployment.

x402 works by reviving HTTP 402 “Payment Required” status code. When users or AI agents request something from a website or app, they receive a 402 prompt and send a signed stablecoin payment. The protocol then automatically verifies the transaction.

Protocol targets API monetization and AI payments

Coinbase launched x402 in May to fix what the company called “the internet’s first mistake.” The protocol allows services to monetize APIs and digital content onchain without requiring accounts, sessions, or complex authentication.

Key use cases include:

• API services paid per request
• AI agents that autonomously pay for access
• Paywalls for digital content
• Microservices monetized via microtransactions
• Proxy services that resell API capabilities

The Coinbase Developer Platform offers a hosted facilitator service that processes fee-free USDC payments on the Base network. The facilitator handles payment verification and settlement so sellers don’t need blockchain infrastructure.

Payments settle directly on-chain without intermediaries or high fees. The protocol supports micropayments and usage-based billing and allows developers to charge per call or feature with programmable pay-as-you-go flows.