Autonomous transaction protocol sees record activity as AI-driven payments reshape digital finance
The x402 protocol, a groundbreaking online payments system introduced by Coinbase, has recorded an explosive 10,000% rise in transactions within a month, signaling growing adoption of AI-powered autonomous payments. The protocol enables artificial intelligence (AI) agents and human users to send and receive stablecoin payments seamlessly over the internet — without intermediaries or credit cards.
According to Dune Analytics data, nearly 500,000 x402 transactions took place between October 14 and 20, marking a 10,780% increase compared to activity levels a month earlier. The momentum peaked on Friday, when a record 239,505 transactions were executed in a single day, alongside $332,000 in total transaction volume.
Revolutionizing Internet Payments with HTTP 402
The x402 protocol is based on the long-dormant HTTP 402 — “Payment Required” status code, which was originally proposed for web-based transactions but never adopted. Coinbase has revived it as a native digital payment layer for the internet, designed to power real-time, programmable transactions between AI systems, apps, and users.
“When an AI agent or user requests a service, they get a 402 response, send a signed stablecoin payment, and receive instant access — all verified automatically,” explained Kevin Leffew, one of the protocol’s developers.
By removing the need for traditional intermediaries, x402 enables frictionless micropayments, instant settlements, and secure API-level interactions — essential for the emerging economy of autonomous AI agents.
AI-Driven Transactions Poised for $30 Trillion Market
The rapid rise of x402 aligns with forecasts from leading venture firms predicting that AI-driven, agentic transactions could exceed $30 trillion by 2030. These transactions will allow self-operating systems — from self-driving taxis to decentralized data services — to manage payments, compute, and storage autonomously using stablecoins.
CoinGecko has now listed x402-based tokens as a new ecosystem category, which has already reached a market capitalization of nearly $180 million, up 266% in just 24 hours, according to the latest tracking data.
Developers emphasize that Ethereum’s trustless, programmable infrastructure makes it the best blockchain for implementing HTTP 402 payments. “They need atomic payments, programmable policies, and composable wallets — Ethereum provides exactly that,” said Leffew.
As AI-integrated finance accelerates, x402 stands out as a key bridge between artificial intelligence and decentralized payments, hinting at a new era where machines and software agents transact autonomously across the global economy.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.