coinpedia.org
-
The organic payment activity using stablecoins in the market is still in the infancy stage despite the immense potential for mass adoption.
-
Clear stablecoins regulations around the world have fueled significant growth in the sector.
-
Top-tier analysts forecast the stablecoins will reach $2.8 trillion in four years.
The stablecoin market has eclipsed more than $161 billion in valuation and a daily average traded volume of around $36 billion. However, market data provided via a dashboard developed by Visa Inc. Cl A (NYSE: V) and Allium Labs shows that organic payment activity for stablecoin is still in the infancy stage.
Of the $2.2 trillion stablecoin transactions in April, only $149 billion emanated from the stablecoin market. As a result, the rest of the stablecoin transactions, amounting to more than $2.1 trillion in April, were initiated by crypto bots and large-scale traders.
Stablecoin Industry at Close Glimpse
The stablecoin market is crucial to the mass adoption of digital assets and the harmonization of the traditional financial sector to the Web3 economy. The stablecoin industry has grown fueled by institutional investors seeking a piece of the $150 trillion payments sector.
Nonetheless, it is worth noting that tracking real stablecoin transactions via blockchain is a complicated process that involves double payments. For instance, a single USDC conversation to PayPal’s PYUSD on a DEX such as Uniswap is counted twice on the total stablecoins volume, whereas it only involves one payment.
Market Picture
The stablecoin industry is currently dominated by Tether’s USDT, which has around 70 percent, closely followed by Circl’s USDC, which has around 22 percent, and Dai (DAI), which has around 3 percent. PayPal USD (PYUSD) has a total valuation of about $327 million and a daily average volume of about $7.2 million.
The rise of the stablecoin market is expected to threaten traditional forms of cross-border payments such as Visa and Mastercard. Furthermore, Ripple Labs, a top-tier web3 company focused on revolutionizing cross-border payments with XRP, will launch its fiat-backed stablecoin later this year.