Stablecoins are increasingly finding adoption for non-crypto activities, in contrast to their original use-case as a bridge to crypto-assets.
Stablecoin transaction volume from Visa’s Onchain Analytics platform
According to one survey of 2,500 active stablecoin users in India, Indonesia, Nigeria, Turkey, and Brazil:
47% of participants said they primarily use stablecoins to get dollar-access
43% said to get better currency conversion rates, and
32% said to send money internationally
The survey indicates that consumers are exploring the use of stablecoins for purposes beyond crypto trading, such as cross-border remittances and payroll, said Head of Crypto at VISA, Cuy Sheffield.
Almost 10% of Payroll Withdrawals from African Contracts are in Crypto, Says Latest Report by @deel https://t.co/u4nDXY5ZiN
— BitKE (@BitcoinKE) March 3, 2022
According to Sheffield, when asked if they had ever used stablecoins for the following activities:
69% have converted local currency to a stablecoin
39% have used stablecoins to pay for a good or service
39% have used stablecoins for a cross-border payment, and
23% have used stablecoins to receive or pay a salary
The survey, done by VISA and @YouGov, also suggests that stablecoin usage for non-crypto activities will continue to grow, as:
57% of respondents report an increase in stablecoin usage in the past year, and
72% believe their usage will increase in the future
REPORT | Nigeria Dominates Emerging Markets Globally in Stablecoin Use, Says a September 2024 YouGuv Survey
The survey also determined that Nigerian users have the highest stablecoin affinity among the countriessurveyed – by far.
Nigerian users transact most frequently,… pic.twitter.com/fRFCXjuCZG
— BitKE (@BitcoinKE) September 16, 2024
Demographic results from the survey show that usage for all non-crypto use cases is highest among 18 -24-year-olds, and 34% of them indicated that they convert local fiat to stablecoins on a weekly basis.
VISA, which in May 2024 said that bots accounted for 90% of reported stablecoin transactions, announced an improvement to its methodology for measuring stablecoin transactions.
JUST IN: New report from Visa and data platform Allium Labs shows that well over 90% of stablecoin transaction volumes ($2.2T) aren’t coming from real users. pic.twitter.com/yvmNotq6Rg
— Jacob King (@JacobKinge) May 12, 2024
That month, VISA collaborated with Allium Labs on a dashboard developed to filter out transactions initiated by bots and large-scale traders, focusing solely on transactions made by genuine individuals. Based on that methodology, out of the approximately $2.2 trillion in total transactions recorded in April 2024, VISA said that only $149 billion stemmed from ‘organic payments activity.’
But VISA now says it has collaborated with @CastleIslandVC, @AlliumLabs, and @Artemis_xyz on an updated methodology, which utilizes wallet address labeling techniques to attribute transactions to specific entities.
“Using this methodology, since 2019, adjusted stablecoin volume has grown on average, 225% each year, throughout market cycles,” said Sheffield.
“We welcome feedback on this approach and hope it can become a standard for stablecoin data analysis.”
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