- The stablecoin market supply is approximately $150 billion, with USDT and USDC dominating at 75% and 22%, respectively.
- The study found steady growth in active monthly stablecoin users, reaching 27.5 million across all blockchain networks.
A recent analysis, partly conducted by Visa, reveals that only a small fraction of stablecoin transactions, under 10%, originate from actual users. The total value of the stablecoin market is around $150 billion, although a significant portion of the transactions seems to be automated. According to a report by Bloomberg, of the $2.2 trillion in total stablecoin transactions recorded in April, merely $149 billion were identified as “organic payments activity.”
The study, which was conducted with Allium Labs, removed transactions performed by bots and large-scale traders to focus on those made by real people. According to broker Bernstein, the stablecoin market is dominated by tether (USDT) and USD Coin (USDC), which hold market shares of 75% and 22%, respectively.
Stablecoins are cryptocurrencies tied to another asset, typically the U.S. dollar, to maintain a stable value. They have recently gained attention after companies like PayPal announced they would issue their own stablecoins. Additionally, legislation to regulate stablecoins is likely to pass through the U.S. Congress.
Cuy Sheffield, who leads Visa’s cryptocurrency division, remarked that blockchains serve as versatile networks where stablecoins can be utilized for diverse functions. He detailed that transactions might be manually initiated by individuals or conducted automatically by bots, which complicates the data.
Despite the difference between total transfer volume and bot-adjusted transfer volume, the study found steady growth in the number of active monthly stablecoin users, reaching 27.5 million across all blockchains.
Stablecoins have become popular for their ability to provide stability in the often-volatile cryptocurrency market. However, the report shows that most transactions are not from individual users. This finding is crucial as stablecoins become more integrated into financial systems and as regulatory scrutiny increases.
The study raises questions about the actual use of stablecoins by individuals versus automated trading or other non-user-driven activities. As the stablecoin market continues to evolve, understanding its true usage patterns will be important for policymakers, businesses, and investors.
