Stablecoins (USDT, USDC, DAI) Future in Payments Questioned: New Research Insights

• Over 90% of stablecoin activity is driven by bots and large-scale traders, not everyday payments, according to a new study by Visa and Allium Labs.
• Lack of user-friendliness and difficulties in tracking real crypto activity with blockchain data are major barriers to wider adoption of stablecoins.
• Despite the potential benefits of stablecoins, such as instant settlement and minimal fees, user adoption and data transparency remain significant challenges.

A new study reveals that the majority of stablecoin activity is driven by bots and traders, not everyday payments, highlighting the challenges facing wider adoption of these digital tokens.

Stablecoin Activity Dominated by Bots and Traders

A recent study by Visa and Allium Labs reveals that over 90% of stablecoin activity originates from bots and large-scale traders, not real people. To measure genuine use, Visa developed a metric that excludes bot activity. This metric showed that only a tiny fraction, roughly $149 billion out of $2.2 trillion in total transactions in April, originated from real users. This finding contradicts the optimistic view of stablecoin proponents who believe these tokens will revolutionize payments.