Stablecoin

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The stablecoin is again gaining the spotlight in the digital assets market as major players like <a href="https://news.todayq.com/ripples-stablecoin-soon-to-enter-crypto-market-xrp-to-blast/" rel="noopener noreferrer nofollow">Ripple announced their entry</a>. Stablecoin issuers such as Tether, Circle and others are growing their market share with the increasing reach of the crypto market. Amid this expansion, reports have emerged revealing major transaction-linked fumbled data. Issue in stablecoin trnx? 
According to reports, Visa Inc. suggested that over 90% of stablecoin transaction volumes aren’t originating from genuine users. This data directly challenges the notion that stablecoins are on the path of revolutionizing the payments industry.
It mentioned that out of a huge total of $2.2 trillion in transactions recorded in April, only $149 billion turned out to be “organic payments activity.” The data was generated by the dashboard made by Visa and&nbsp; Allium Labs.
This major claim comes in when the stablecoin market cap is standing tall at $160.4 billion. The 24 hour trading volume of stablecoins stood at $48 billion, at the press time.&nbsp;
USDT, issued by Tether, is the biggest stablecoin in the crypto market. It is holding a market cap of $110.9 billion. Its 24 hour trading volume is up by 3% to stand at $40.3 billion. However, USDC, issued by Circle, is the second biggest stablecoin in the crypto town with a market cap of $33.6 billion. Its 24 hour trading volume dropped by 30% to stand at $4 billion.
This comes despite efforts launched by fintech giants like PayPal Inc. and Stripe Inc. to integrate stablecoins into their platforms. Visa found that stablecoins are still in an emerging stage of evolution as a payment method. Can it move market? 
One of the challenges in accurately assessing the value of crypto activity lies in tracking it using blockchain data. Data provider Glassnode estimates that the actual market circulation of digital tokens during the 2021 bull market peak was significantly lower than reported figures.
Moreover, stablecoin transactions often face the issue of double-counting, depending on the platforms involved. Visa’s head of crypto, Cuy Sheffield, highlights this challenge, illustrating how a single transaction could be recorded twice depending on the platforms used.
Despite the potential benefits of crypto, including instant and low-cost transactions, adoption remains tepid among consumers. Airwallex has observed limited demand for stablecoin-based payment solutions due to concerns about user-friendliness. Additionally, traditional payment methods like checks still dominate a significant portion of business transactions in the US.

90% of stablecoin transactions not coming from genuine users: Report

Todayq News

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