Study Indicates 90% of Stablecoin Transactions Not User-Driven

The recent study conducted by Allium Labs and Visa revealed that more than 90% of stablecoin transactions do not originate from real users. This study raised questions about stablecoins’ potential to revolutionize the payment industry despite optimism from the overall positive market sentiment and industry leaders.

Stripe Seeks To Utilize Stablecoins To Improve Payment Experiences

Stripe’s choice to utilize stablecoins shows a change from its previous involvement in cryptocurrency. This change also brought up problems like technical issues and volatility issues.

Stablecoins, such as Circle’s USDC, stay at the same value, which helps lessen the sharp changes that come with regular digital assets such as Bitcoin.

In a recent presentation, John Collison, Co-Founder and President of Stripe, indicates how to make a flawless payment using USDC, a type of stablecoin. He showed that USDC is suitable and stable for making transactions online.

When talking about their experience with Bitcoin payments, Collison admitted it wasn’t great, tagging it a “fairly poor payment experience.” But now, Stripe is focusing on using stablecoins to make payments easier and more dependable.

Even though influential figures in the industry, like John Collison from Stripe, express optimistic views, the data emphasizes that stablecoins are still in their early developmental phase.

This is a result of a practical method of payment. The disclosure questions the prevailing belief about stablecoins, which are tied to assets like the dollar, being close to transforming the payment sector. This insight has received backing from prominent financial technology companies such as Stripe and PayPal.

Stablecoins Aims To Establish Itself As A Reliable Instrument For Conducting Transactions

In the last month, out of a staggering $2.65 trillion in stablecoin total transactions, only $265 billion were attributed to “organic payments activities”.

This shows that most of the transactions weren’t done by actual users. This information came from a special dashboard that examines stablecoin transactions and distinguishes between artificial volume and authentic user engagement.

Additionally, experts still think that stablecoins will become more popular in the next few years, even with the difficulties they face. It is projected that the total value of stablecoins could reach $2.8 trillion by 2028.

Stripe also came back to dealing with cryptocurrency after six years away. But now, the firm is using stablecoins to make transactions safer.

Stablecoins could shake up how payments work, but there are some problems to solve first. Pranav Sood from Airwallex stated that the firm needs to improve its current payment systems so that using stablecoins becomes easy.

It’s also important to make sure the apps or websites users use for payments are simple and easy to understand. Many folks still like using regular ways to pay because they find them easier, he added.