Based on Forklog, Coinbase's x402 payment protocol, designed for AI payments and cross-border transfers, has seen a surge in hype followed by a decline in activity. WuBlockchain contributor shisi.eth tested the protocol and highlighted its speculative narrative over real-world utility. The protocol, launched in May 2025, saw a spike in October with 932,440 transactions totaling $913,888, but recent data shows a drop in total capitalization. x402 uses HTTP-based stablecoin payments and relies on technologies like ERC-3009 and TEE wallets. However, experts note technical incompleteness, unprepared AI infrastructure, and regulatory concerns. The 402bridge cross-chain bridge also suffered a security incident, losing over 17,000 USDC due to a private key leak.
Coinbase's x402 Payment Protocol Faces Criticism Amid Declining Interest
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