LIVEMORE than 90 per cent of stablecoin transaction volumes are not coming from genuine users, according to a new metric co-developed by Visa.
Out of about US$2.2 trillion in total transactions in April, just US$149 billion originated from “organic payments activity”.
Data provider Glassnode has estimated that the record US$3 trillion of total market circulation assigned to digital tokens at the peak of the 2021 bull market was actually closer to US$875 billion.
With stablecoins, transactions can often be double-counted depending on the platform users are transferring funds to.
For example, converting US$100 of Circle Internet Financial’s USDC to PayPal’s PYUSD on the decentralised exchange Uniswap would result in US$200 of total stablecoin volume being recorded on-chain.
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