Stablecoins Challenge Visa in Transaction Volume: Implications for Bitcoin (BTC) Growth

• The rise of stablecoins is projected to surpass Visa’s total payments volume (TPV) by Q2 2024, reflecting their growing role in the global payments landscape.
• Stablecoins are primarily used as a medium for trading cryptocurrencies, with nearly 90% of transactions tied to trading activities.
• Despite their predominant use in crypto trading, the sheer volume of transactions facilitated by stablecoins signals potential broader acceptance and integration into mainstream financial systems.

Stablecoins are set to overtake Visa in total payments volume by Q2 2024, marking a significant milestone in the global payments landscape. The article explores the factors driving this growth and the potential implications for the future of financial systems.

Stablecoins: The Rising Star of Crypto Trading

Stablecoins have experienced a meteoric rise since 2017, with their use as a primary medium for trading cryptocurrencies driving significant growth. Data indicates that nearly 90% of stablecoin transactions are tied to trading activities, including a notable portion attributed to wash trading — a practice that inflates trade volumes through repeated and coordinated buying and selling.

Comparing Stablecoins and Traditional Payment Networks

While Visa has long been a benchmark for measuring payment volumes, the comparison with stablecoins might be somewhat misleading. Visa primarily facilitates retail and commercial transactions, whereas the utility of stablecoins is currently concentrated in the crypto ecosystem. Despite this,... Read the full article for FREE at COINOTAG!