Stablecoin

Human

Uniswap

USDC

In a recent report by Bloomberg, it has been revealed that more than 90% of stablecoin transaction volumes do not originate from genuine users, according to a new metric co-developed by Visa. 
<h2 id="stablecoin-market-faces-data-reality">Stablecoin Market Faces Data Reality</h2> 
Visa and Allium Labs have created a dashboard designed to filter out transactions initiated by bots and large-scale traders to isolate those made by real individuals. Out of approximately $2.2 trillion in <a href="https://www.newsbtc.com/tether/stablecoin-giant-tether-strikes-gold-achieves-record-net-profit-of-4-5-billion-in-q1/" target="_blank" rel="noopener ">total transactions</a> recorded in April, a mere $149 billion was identified as “organic payments activity” by Visa. 
The <a href="https://www.bloomberg.com/news/articles/2024-05-05/more-than-90-of-stablecoin-transactions-aren-t-real-study-finds?sref=3REHEaVI" target="_blank" rel="noopener nofollow">data </a>challenges the optimistic outlook of stablecoin proponents who believe these tokens can transform the $150 trillion payments industry.&nbsp; 
Fintech giants such as PayPal Inc. and Stripe Inc. have been exploring stablecoins, with Stripe co-founder John Collison expressing bullishness on the tokens due to “technical improvements.”&nbsp; 
Pranav Sood, the executive general manager for EMEA at payments platform Airwallex, commented on the findings: “It says that stablecoins are still in a very nascent moment in their evolution as a payment instrument.”&nbsp; 
Sood emphasized the need to focus on increasing existing <a href="https://www.newsbtc.com/news/defi-and-web3-gaming-dominate-q1-record-transactions-leave-stablecoins-in-the-dust-report/" target="_blank" rel="noopener ">payment infrastructure</a> in the short and mid-term while acknowledging the long-term potential of stablecoins. 
Accurately tracking crypto activity’s “real” value using blockchain data has always been challenging. Glassnode, a data provider, estimates that the record $3 trillion assigned to digital tokens at the<a href="https://www.newsbtc.com/breaking-news-ticker/ripple-prepares-to-shake-up-150b-market-with-imminent-launch-of-new-stablecoin/" target="_blank" rel="noopener "> bull market’s peak</a>&nbsp;in 2021 was closer to $875 billion. 
<h2 id="analysts-predict-massive-surge-ahead">Analysts Predict Massive Surge Ahead</h2> 
According to Bloomberg, the nature of stablecoin transactions often leads to double-counting, depending on the platform users employ for fund transfers. For example, converting $100 of Circle’s USDC stablecoin to PayPal’s PYUSD on the <a href="https://www.newsbtc.com/news/stablecoins-steal-the-spotlight-150-billion-market-cap-122-billion-daily-trades/" target="_blank" rel="noopener ">decentralized exchange</a> (DEX) Uniswap would result in $200 of total stablecoin volume being recorded on-chain. 
Visa, which processed over $12 trillion the previous year, could suffer if stablecoins gain widespread acceptance as payment.&nbsp; 
Interestingly, despite this troubling data, analysts at Bernstein predicted that the total value of all stablecoins in circulation could reach $2.8 trillion by 2028, nearly 18 times their current combined circulation. 
While <a href="https://www.newsbtc.com/stablecoin/stablecoins-join-the-crypto-bull-run-with-140b-market-cap-highest-since-2022/" target="_blank" rel="noopener ">PayPal </a>and Stripe have made strides in adopting stablecoins, Airwallex has observed limited demand for stablecoin-based payment solutions among its customers, primarily due to concerns about “user-friendliness.”&nbsp; 
Sood emphasized the significant barrier of overcoming entrenched payment methods, citing the continued use of checks for 40% to 60% of business payments in the United States. 
The Bloomberg report sheds light on the dominance of non-genuine user activity in stablecoin transactions. The study underscores the importance of improving existing payment infrastructure and addressing user-friendly concerns to unlock the long-term potential of stablecoins. 
<img loading="lazy" decoding="async" class="size-large" src="https://www.tradingview.com/x/TDisnpmd/" alt="Stablecoin " width="1815" height="858"> 
Featured image from Shutterstock, chart from TradingView.com

Study Uncovers Surprising Data: 90% Of Stablecoin Transactions Not Driven By Human Users

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