Majority of Stablecoin Transactions Driven by Bots, Report Reveals
Less than 10% of the stablecoin transaction volume in April was attributed to genuine users, as per a report from Bloomberg citing Visa’s recent findings.
The report indicated that over 90% of the volume was associated with bots and large-scale traders. Out of a total of approximately $2.2 trillion in transactions during April, only about $149 billion originated from organic payments activity.
Despite the significant growth of stablecoins, with a market cap of $160 billion and notable increases in certain stablecoins like DAI, mainstream adoption as a payment option remains distant.
Traditional players like Paypal and Stripe have entered the stablecoin space, reflecting growing interest, but adoption on a global scale is not yet realized.
Market analysts view the global mainstream adoption of stablecoin payments as a potential threat to traditional players like Visa, which processed $12 trillion in transactions last year alone.
READ MORE: Stablecoins vs. Visa: The Race for Payment Supremacy
While some believe that mainstream adoption could eventually occur, current attention should be on improving existing payment infrastructure.
Pranav Sood, a general manager at the payment platform Airwallex, emphasized the need to focus on enhancing existing payment rails in the short and midterm.
Meanwhile, stablecoin market activity has surged, particularly following market improvements after significant drawdowns in March and April. Large players, including whales, increasing their holdings in stablecoins could indicate positioning for discounted offers, potentially influencing market dynamics.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
