- More than 90% of stablecoin volumes are tied to bots and large traders.
- The findings suggest that stablecoin payments have not yet reached mainstream adoption.
Only less than 10% of April stable currency transaction volume was linked to real users.
According to a Bloomberg reportAccording to the latest findings from Visa Inc. More than 90% of volume was linked to bots and large-scale traders.
Part of the report emphasized that,
“Of the approximately $2.2 trillion in total transactions in April, only $149 billion came from organic payments activity”
Source: Bloomberg
Compared to the $150 trillion payments industry, the report suggested that stablecoins are still far from achieving mainstream adoption as a payment option.
Stablecoin still has a long way to go before it is accepted by the mainstream
Paypal and Stripe are some traditional players in the payments ecosystem that have entered the stablecoins space.
Visa, a major traditional player, processed $12 trillion in transactions last year alone. Most market observers view the global adoption of stablecoin payments as a direct threat to Visa’s business.
However, some market observers believe that the market is still in its early stages and that mainstream adoption could happen in the long term, but in the short to medium term the focus should be on the payments track.
An analyst, Pranav Sood, Managing Director of payment platform Airwallex, noted:
“The focus in the short and medium term should be to ensure that the existing railway lines work much better.”
In the meantime, the stablecoin market continued to rise amid market improvement after massive declines in March and April.
The market cap reached $160 billion, with DAI dominating the remarkable growth of blue-chip stablecoins.
On a monthly basis, Ethena’s USDe and First Digital’s FDUSD posted double-digit growth, DeFiLlama facts showed. DAI, USDTAnd USDC followed closely, with single-digit growth in that order.
A rise in stablecoin ownership, especially by Whales, could mean big players positioning for competitively priced offers, stimulating markets.
At the moment of writing, Bitcoin [BTC] was back in the $60,000 to $71,000 range, and further gains in stablecoins could provide additional market upside.