90% of Stablecoin Activity May Not Involve Humans, Visa Says
Sentiment: Positive
In a groundbreaking collaboration, payments juggernaut Visa and blockchain data provider Allium have peeled back the layers obscuring stablecoin transactions, revealing a surprising revelation: a significant part of these transactions may not be of human origin.
Visa's new data dashboard, developed in partnership with Allium, is a beacon of transparency in the murky waters of crypto transactions. By scrutinizing the movements of four major stablecoins - Tether (USDT), USD Coin (USDC), Paxos Standard (USDP), and PayPal (PYUSD) - Visa's analysis unveils a startling truth. Over 90% of the tracked transactions appear to stem from automated processes rather than human interaction.
The Rise of Automation
The implications are profound. Sunday, May 5th, marked a watershed moment, with Visa disclosing a staggering $51.6 billion in unfiltered stablecoin transactions. Yet, upon sifting through the data to isolate human-driven activity, the figure plummeted to a mere $4.6 billion. This disparity underscores the dominance of automated bot programs, orchestrating intricate maneuvers like arbitrage, liquidity provision, and market making within the decentralized finance (DeFi) realm.
Visa's assertion challenges prevailing narratives surrounding stablecoins, as a viral chart insinuated their encroachment upon established payment networks. However, the distinction drawn by Visa highlights a fundamental disparity. Transactions orchestrated by smart contracts bear little resemblance to traditional payment settlements, warranting a recalibration of our understanding of financial infrastructure in the digital age.
The Ascendance of USDC
Amidst this revelation, the ascent of USD Coin (USDC) emerges as a conspicuous subplot. From a modest 23% share of all tracked transactions in September 2023, USDC has staged a meteoric rise, breaching the 50% threshold by December. Since then, its dominance has persisted, maintaining a stronghold between 50% and 60%.
As Visa and Allium peel back the layers shrouding stablecoin transactions, the contours of a new financial landscape emerge. Automation reigns supreme, reshaping our understanding of payment dynamics and heralding a paradigm shift in the crypto realm.
Yazar Hakkında
Enthusiastic writer whose current area of interest is the blockchain sector. When not writing, you will find her reading essays on sociology and playing/listening to music. Firm believer that crypto will transform the world.
