The world of stablecoins, cryptocurrencies pegged to a stable asset like the US dollar, has been booming. However, a new report casts a shadow on this growth, suggesting a surprising disconnect between transaction volume and actual user activity.
Visa and Allium Labs Shed Light on Stablecoin Usage
According to a recent report by Visa and data platform Allium Labs, a staggering less than 10% of stablecoin transaction volume in April originated from “organic payments activity,” meaning activity from real people using them for purchases or other legitimate purposes.
Where’s the Rest Going?
The report suggests the remaining over 90% of transaction volume could be attributed to bots, high-frequency traders, or speculative activity. This raises concerns about the true utility of stablecoins beyond market manipulation or short-term trading strategies.
Is There a Silver Lining?
Despite the low percentage of organic transactions, the report also highlights a positive trend: a steady increase in the number of monthly active users for stablecoins. This suggests growing interest and potential for future adoption as real-world use cases develop.
Regulation on the Horizon?
With the high volume of non-organic activity, regulatory scrutiny of stablecoins is likely to intensify. Governments are working to establish frameworks to ensure these assets are used responsibly and transparently.
The Future of Stablecoins
The dominance of non-organic transactions raises questions about the true value proposition of stablecoins. However, the rising number of users suggests potential for the future. As regulations evolve and real-world use cases emerge, stablecoins could become a more integrated part of the financial landscape.
Stay Informed with Koinat.net
Koinat.net remains committed to providing accurate and up-to-date information on the ever-changing world of cryptocurrency. We’ll continue to monitor developments in the stablecoin space and keep you informed on the latest trends and regulations.
This information is not legal advice. Do your own research before making any decisions. Only invest what you can afford to lose and seek independent financial advice if needed. Understand the risks involved before purchasing any cryptoasset