Study Reveals Shocking Data: 90% Of Stablecoin Transactions Not Driven By Human Users

Bloomberg published an investigative report which revealed that more than 90 per cent of stablecoin transaction volumes do not stem from genuine users, according to an assessment co-developed with Visa.
Visa and Allium Labs Have Launched Dashboard To Address Stablecoin Market In April alone, approximately $2.2 trillion worth of transactions were recorded with just $149.1 billion identified as organic payments activity by Visa – out of this figure are transactions initiated by bots or large traders such as major stock traders who could potentially misuse funds intended for real individuals. This dashboard allowed Visa to identify how real people’s funds had actually been invested instead.

PayPal Inc. and Stripe Inc. have explored stablecoins as part of their cryptocurrency strategies, with Stripe co-founder John Collison showing his optimism towards these tokens due to “technical improvements”.
Pranav Sood, Executive General Manager for EMEA of payments platform Airwallex commented on these findings by noting: “Stablecoins remain at an early stage in their evolution as payment instruments.”
Sood highlighted the necessity of expanding current payment infrastructure quickly while acknowledging stablecoin’s long-term potential.
Accounting for crypto activity’s “real” value with blockchain data has always proven challenging, however Glassnode, a data provider, estimates that out of the estimated $3 Trillion assigned in 2021 at its peak – it actually came closer to $875 Billion!
Analysts Predict Massive Surge
According to Bloomberg, stablecoin transactions tend to result in double counting due to various platforms users employ for fund transfers. For instance, switching $100 of Circle’s USDC stablecoin for PayPal PYUSD on DEX Unswap would result in $200 of total stablecoin volume being recorded on-chain.
Visa processed over $12 trillion last year; its profits could suffer should stablecoins become widely adopted as payment instruments.
Bernstein analysts predicted, despite this alarming data, that total stablecoin circulation will reach $2.8 trillion by 2028 — nearly 18 times their current circulation!

PayPal and Stripe have made progress toward adopting stablecoins; however, Airwallex has seen little interest among its customers for stablecoin-based payment solutions due to concerns of user friendliness.
Sood noted the difficulty in breaking away from entrenched payment methods, noting the continued use of checks in 40-60% of business payments in the US.
The Bloomberg report illuminates the widespread non-genuine user activity seen in stablecoin transactions and emphasizes its need to enhance existing payment infrastructure as well as user-friendliness issues to unlock long-term potential of stablecoins.
This 1-D chart displays the market cap’s valuation surge over the last 5 days as measured by TOTAL on TradingView.com; featured image and chart provided by Shutterstock and TradingView respectively.
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