According to recent findings by Visa and data platform Allium Labs, less than 10% of stablecoin transaction volumes are deemed organic or originating from genuine individuals.
Out of approximately $2.2 trillion in total transactions recorded in April, only around $149 billion were attributed to "organic payments activity" after filtering out transactions conducted by bots and large-scale traders.
Currently, the stablecoin market boasts a total supply of about $150 billion, with tether (USDT) and USD Coin (USDC) commanding the market with shares of 75% and 22%, respectively, as reported by brokerage firm Bernstein.
Stablecoins, which are cryptocurrencies pegged to another asset such as the U.S. dollar to maintain a stable value, have garnered significant attention following announcements by companies like PayPal about issuing their stablecoins.
Legislation aimed at regulating stablecoins is anticipated to have the highest likelihood of passage in the U.S. Congress.
Visa's Head of Crypto, Cuy Sheffield, acknowledged the noise inherent in the data due to the multifaceted nature of blockchain networks, where stablecoins serve various use cases and transactions can be initiated manually by end-users or automatically through bots.
Despite the disparity between total transfer volume and bot-adjusted transfer volume, the analysis revealed a consistent growth in monthly active stablecoin users, with approximately 27.5 million monthly active users across all blockchain networks.
May 2024, Cryptoniteuae