Stablecoin Volume Surpassing Visa?
According to research firm Sacra, stablecoins could surpass the total payment volume of Visa this quarter. This claim was made in a blog post by Sacra co-founder Jan-Erik Asplund, who argued that stablecoins have a strong advantage in cross-border money transfers. Asplund stated that stablecoins offer greater convenience, faster transaction times, and lower costs compared to traditional payment methods. He also noted that major banks are actively exploring the use of stablecoins for their payment infrastructure.
Visa’s head of crypto, Cuy Sheffield, disagreed with Sacra’s assertion. Sheffield argued that there is a significant amount of noise in stablecoin data and that on-chain transactions involving bots and automated programs do not qualify as legitimate settlements. He further claimed that as much as 90% of stablecoin transactions in the past 30 days were not made by genuine users, according to Visa’s recently launched dashboard.
Visa collaborated with Allium Labs to develop a new metric for measuring stablecoin transactions on its dashboard. This metric aims to account for potential distortions caused by artificial inflationary practices and inorganic activity. It includes two filters to remove excessive activity from centralized exchanges and filter out bot transactions.
Despite the discrepancies in data interpretation, the overall stablecoin transaction volume has nearly doubled since the beginning of 2024, with Tether (USDT) and Circle’s USD Coin (USDC) being the dominant players. Other payment giants like PayPal and Stripe have also entered the stablecoin market, with PayPal launching its own stablecoin called PYUSD in 2023.
Ripple, another major player in the cryptocurrency industry, has announced plans to launch a USD-backed stablecoin to compete with existing market leaders. Currently, the stablecoin market has a total capitalization of around $161 billion, with a daily trading volume of $37 billion.
reached out to Visa and Tether for further comments, but no immediate response was received.
20 thoughts on “Stablecoin Volume Surpassing Visa?”
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It would be interesting to hear Visa and Tether’s perspectives on this matter. Their insights could provide valuable insights into the future of stablecoins.
With a total capitalization of $161 billion and a daily trading volume of $37 billion, the stablecoin market is clearly thriving. It’s an exciting time for digital currencies. 💸🎉
PayPal and Stripe jumping into stablecoins just feels like a desperate move.
No response from Visa and Tether? That says a lot. 🤔
Visa and Tether’s silence speaks volumes.
Ripple launching a USD-backed stablecoin will add more competition and innovation to the market. This will benefit users and push the industry forward. 🌟💼
I don’t think stablecoins offer as much convenience and lower costs as claimed by Sacra. 💸
Visa’s head of crypto has a point about the reliability of stablecoin data. 💡
The stablecoin market may have doubled, but the actual impact is questionable.
The daily trading volume of stablecoins doesn’t impress me. 📆
I’m skeptical about the accuracy of Sacra’s research.
This is amazing news for stablecoins! They have so many advantages over traditional payment methods. 💪💰
Tether and USD Coin are dominating the stablecoin market. Their success shows that users find them reliable and trustworthy for their transactions. 💪💼
I highly doubt that stablecoins will surpass Visa’s payment volume.
Stablecoin transactions involving bots and automated programs don’t count as legitimate settlements. 🤖
PayPal and Stripe entering the stablecoin market is a game-changer. It brings stability and credibility to the industry and encourages wider adoption.
Stablecoins are revolutionizing cross-border money transfers! They offer convenience, speed, and lower costs. 💸✨
I’ll stick to traditional payment methods rather than relying on stablecoins. 💳
This is just another overhyped claim about stablecoins.
Ripple’s plans to compete in the stablecoin market sound like a long shot. 🎯