In keeping with information revealed by Hashed Official, Dexter has overtaken Coinbase to grow to be the biggest every day facilitator of x402 transactions since December eleventh. The AI protocol presently facilitates over 19.8 million complete transactions, 14 million fewer than the Base community.
The Korean enterprise fund cited information from Dune Analytics exhibiting that about half of its every day transactions since mid-December have been processed by Dexter. On the similar time, Coinbase’s share fell by 1 / 4 to a 3rd relying on the day.
Variety of x402 transactions per facilitator. Supply: Dune
The remaining quantity is break up between PayAI and DayDreams, which collectively account for as a lot as 30% of the remaining market on one of the best days. Coinbase, Dexter, PayAI, and DayDreams every presently course of greater than 10 million complete x402 transactions.
On the similar time, the entire variety of x402 transactions has elevated sharply since October. Each day buying and selling quantity elevated from negligible ranges in early October to repeat peaks of greater than 2 million trades by mid-November.
In keeping with Dune’s charts, there have been a number of days in late November and early December the place transactions approached or exceeded 3 million transactions per day.
From early October to mid-November, Coinbase facilitated the vast majority of x402 transactions, accounting for 60% or 70% of every day buying and selling quantity. Nonetheless, on December tenth, Dexter’s share rose to 30.7%, whereas Coinbase’s share fell to 31%. AI networks have been a serious driver all through the ultimate months of the 12 months.
PayAI and DayDreams additionally present constant development in each absolute transaction rely and proportion share. Collectively, these sometimes account for 20% to 30% of every day x402 quantity, in response to Dune Analytics’ stacked bar chart.
Convert x402 experimental code to manufacturing funds
x402 is an open cost protocol developed by Coinbase final 12 months that introduced again the HTTP 402 “Fee Required” standing code. Though this code has existed for many years, it had by no means been meaningfully carried out in net infrastructure. x402 provides it a sensible function by enabling automated instantaneous funds of stablecoins immediately through normal HTTP requests.
When a consumer requests entry to an API, dataset, or digital useful resource, the server returns a 402 standing code with cost phrases. You may then ship a signed cost payload, largely denominated in USDC.
A facilitator like Dexter AI checks the cost on-chain and, as soon as verified, instructs the server to right away ship the requested content material. It screens appropriate blockchains, checks obtained funds, creates signed authorizations, and offers an HTTP interface. Due to this fact, merchants could make funds on-chain with out having to host their very own blockchain nodes.
Coinbase operates a hosted facilitator that gives fee-free USDC funds with high-throughput funds on Base and Solana. This service was a key driver of early x402 adoption. Nonetheless, this protocol is explicitly designed to help a number of impartial facilitators, permitting companies to decide on or change suppliers.
Coinbase made x402 publicly accessible final Might, and by December introduced that it had processed 75 million x402 transactions value $24 million by paid APIs and interactions with AI brokers.
Coinbase launched a second model of the protocol in September that added network-agnostic identifiers, pluggable facilitators, pockets hooks, and a discovery layer often called x402 Bazaar. All of that is to permit builders and companies to freely use x402 with different blockchain networks and operators.
“Consider it like a paywall for scrapers, so x402 is the usual of alternative for conditions the place AI brokers want entry to information and content material to make higher, extra knowledgeable choices. Actually, you may pay for any digital product or media with X402,” mentioned Erik Reppel, Head of Engineering at Coinbase Developer Platform.
x402 integration expanded with real-world use circumstances
The adoption of x402 has obtained some help from main web companies like Cloudflare. Cloudflare has introduced plans to combine x402 into its platform and co-launch the x402 Basis alongside Google Cloud’s Agent Funds Protocol, which can use the funds protocol for on-chain funds.
Coinbase factors to potential use circumstances similar to permitting brokers to acquire stay market information, fee AI artwork fashions, and subscribe to real-time sports activities and monetary feeds. Some listings on x402 Bazaar embrace Priorix, a inventory worth API that enables brokers to create up-to-date monetary experiences.
