2024

Verge

<figure> 
 <figcaption>
 Cover image via <a href="https://u.today/">U.Today</a>
 </figcaption> 
</figure>
The rise of stablecoins has been nothing short of meteoric since 2017, with recent projections suggesting that they are set to surpass <a href="https://twitter.com/TurnerNovak/status/1786916367989416212">Visa</a> in total payments volume (TPV) by the second quarter of 2024. This anticipated milestone underscores the significant role that stablecoins are beginning to play in the global payments landscape, particularly within the realm of cryptocurrency <a href="https://u.today/ton-token-skyrockets-17-amid-telegram-reaching-900-million-users">trading</a>.
While Visa has long been a benchmark for measuring payment volumes, stablecoins are rapidly closing the gap, thanks in large part to their increasing use as a primary medium for trading cryptocurrencies. Data shows that nearly 90% of stablecoin transactions are tied to trading activities, including a notable portion that is attributed to wash trading — a practice that inflates trade volumes through repeated and coordinated buying and selling.
<blockquote>
 Stablecoins are estimated to pass Visa in total payments volume in Q2.Anyone know where most of these volumes are coming from? And what they're being used for? <a href="https://t.co/LEZbpnZGLO">pic.twitter.com/LEZbpnZGLO</a>— Turner Novak 🍌🧢 (@TurnerNovak) <a href="https://twitter.com/TurnerNovak/status/1786916367989416212?ref_src=twsrc%5Etfw">May 5, 2024</a>
</blockquote> 
The predominant use of stablecoins in the <a href="https://u.today/new-coinbase-lawsuit-suggests-solana-sol-near-near-stellar-xlm-and-other-coins-are-securities">crypto</a> trading sector might make the comparison of their volume with traditional payment networks like Visa incorrect, since it primarily facilitates retail and commercial transactions. According to a blog post from Visa, the utility of stablecoins is currently concentrated in the crypto ecosystem, specifically for facilitating quick and seamless transitions in and out of different cryptocurrencies.
Despite this, the sheer volume of <a href="https://u.today/shiba-inu-soars-12-with-shib-burns-printing-4-digit-rise-details">transactions</a> facilitated by stablecoins is impressive. Currently, stablecoins are handling $265 billion in volume with an active user base of 27.5 million monthly active users (MAUs). This averages out to approximately $9,600 per MAU.
The market cap of Tether&nbsp;stands at $110.86 billion, reflecting the substantial growth of the market. This growing reliance on stablecoins, despite their primary use in trading, signals potential broader acceptance and integration into mainstream financial systems in the future.

Stablecoins on Verge of Beating Visa in Volume: How Will It Affect Bitcoin?

U_Today

Other articles published on May 5, 2024

Best Cryptocurrencies to Invest in Right Now May 5 – Akash Network, Render, Ontology

XRP Awaits: Ripple's Stablecoin Progress Teased

Crypto ETF Fund flows, let’s decode the pattern

Eco Friendly Dogecoin-Killer Dogecoin20 Launches on MEXC Today With 45% Staking Returns!

Unexpected Market Response as 400 Million XRP (XRP) Released from Escrow: Crypto Update

DOGE and SHIB Prices Surge: A Look at Dogecoin and Shiba Inu’s Resilience Amidst Falling Whale Ac...

Join our free newsletter for daily crypto updates!