According to Bloomberg, a new indicator developed jointly by payment giant Visa and blockchain data analytics company Allium Labs shows that over 90% of stablecoin trading volume does not come from real users. This suggests that these types of cryptocurrencies still have a long way to go before becoming mainstream payment methods.
Visa and Allium Labs’ data indicator aims to exclude transactions initiated by bots and large-scale traders in order to isolate transactions from real human users. The data indicates that out of a total trading volume of approximately $2.2 trillion in April, only $149 billion came from “organic payment activity.”
Supporters of stablecoins widely believe that due to their inherent advantages of cross-border, real-time settlement, and low cost, stablecoins have the potential to disrupt the $150 trillion payment industry. Analysts at Bernstein predicted last year that the total circulation value of all stablecoins could reach $2.8 trillion by 2028, nearly 18 times the current circulation.
However, Visa’s findings challenge the claims of stablecoin supporters. Pranav Sood, the General Manager for Europe, Middle East, and Africa at payment platform Airwallex, commented on these data, saying, “This indicates that stablecoins as payment instruments are still in a very early stage. This does not mean they do not have long-term potential, I believe they do, but the short and medium-term focus should be on ensuring that existing payment channels work better.”
