Unveiling the Truth Behind Stablecoin Transactions: Are They Really from Real Users?

The Surprising Reality of Stablecoin Transactions

A recent report co-developed by Visa has uncovered a startling fact – more than 90% of stablecoin transactions aren't originating from authentic users. In the realm of cryptocurrency, where transparency is paramount, this revelation brings to light a pressing concern about the legitimacy of these transactions.

Debunking the Numbers

• Out of a staggering $2.2 trillion in total transactions, only $149 billion can be attributed to genuine user activity.
• The analysis rigorously sifted through the data to exclude transactions from bots and large-scale traders, revealing the stark truth about the volume of organic transactions.

The Dominance of Tether and USD Coin

With a market supply hovering around $150 billion, stablecoins like Tether (USDT) and USD Coin (USDC) wield significant influence, capturing 75% and 22% of the market share respectively.

Understanding the Role of Stablecoins

Stablecoins, tethered to traditional assets like the U.S. dollar, serve to maintain stability and value in the volatile cryptocurrency space. Their growing popularity, further propelled by major players like PayPal entering the arena, underscores the need for regulatory frameworks to govern their usage.

Insightful Perspective from Visa

In a note by Cuy Sheffield, Visa's Head of Crypto, the complexities of stablecoin transactions are unraveled. While acknowledging the varied nature of blockchain transactions, the focus remains on discerning real user activity amidst the noise generated by bots and automation.

Growth Amidst Controversy

Despite the discrepancies in transaction volumes, a silver lining emerges through the steady rise of monthly active stablecoin users, with over 27.5 million participants engaging across diverse blockchain networks.