Over 90% of Stablecoin Transaction Volumes Are Not From Genuine Users: Visa Study
A recent study conducted by Visa and Allium Labs has found that more than 90% of stablecoin volumes do not originate from genuine users.
The findings challenge the notion that stablecoins, which are cryptocurrencies pegged to a specific asset like the US dollar, are on the verge of revolutionizing the $150 trillion payments industry, according to a Monday report from Bloomberg .
The joint dashboard developed by Visa and Allium Labs aims to filter out transactions initiated by bots and large-scale traders in order to isolate those made by real individuals.
The data from April indicates that out of approximately $2.2 trillion in total transactions, only $149 billion can be attributed to “organic payments activity” conducted by genuine users.
The study’s results suggest that stablecoins are still in the early stages of their evolution as a payment instrument.
“That’s not to say that they don’t have long-term potential because I think they do,” Pranav Sood, the executive general manager for EMEA at payments platform Airwallex, said.
“But the short-term and the mid-term focus needs to be on making sure that existing rails work much better.”
@visa starting to get scared about the volume of transactions getting settled with #stablecoins.
I'm not surprised TBH – the stablecoin settlement volume now EXCEEDS that of Visa.
Why do we still need Visa when we can settle peer to peer?https://t.co/YwDKWrMgQa
— Jason Sarria-Solis (@Jsonsarriasolis) May 5, 2024
Accurately tracking the real value of crypto activity using blockchain data has always been a challenge.
For instance, data provider Glassnode estimated that the record $3 trillion market circulation assigned to digital tokens during the peak of the 2021 bull market
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