Over 90% of stablecoin transaction volumes are not from real users, according to a recent report from Bloomberg.
Out of around $2.2 trillion transactions in April 2024, only $149 billion came from “organic payment activity,” after excluding transactions performed by bots and whale-sized traders to “isolate payments done by real users.”
Notably, the current stablecoin market supply is worth over $150 billion, with tether (USDT) and USD Coin (USDC) leading the entire market, accounting for 75% and 22% of the overall supply, respectively.
However, despite the significant differences between the overall trading volume and bot-adjusted transfer volume, the report identified a consistent rise in monthly active stablecoin users. The stablecoin ecosystem reportedly had 27.5 million monthly users.
Last month, Cuy Sheffield, the Head of Crypto at Visa, said in a statement that there is also a lot of noise in the data provided that blockchains are general-purpose networks where stablecoins can be leveraged across a variety of use cases with transactions that can be implemented manually programmatically by bots or users.
Stablecoins, digital assets pegged to the value of other asset classes or fiat currencies, have gained significant attention since the entry of major firms like PayPal into the market. This move has not only increased the variety of stablecoins but also diversified their use cases.
The renowned payment firm announced its PayPal USD (PYUSD) stablecoin in August 2023. The stablecoin value is pegged to the US dollar, short-term U.S. Treasuries, and comparable liquid assets. It is developed and operated within the Ethereum blockchain, designed to focus on crypto transactions and web3 principles.
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