Experts Question Validity of Stablecoin Volume Claims Amid Concerns of Manipulation
The post Experts Question Validity of Stablecoin Volume Claims Amid Concerns of Manipulation appeared on BitcoinEthereumNews.com. Experts caution that stablecoin transaction volumes may be inflated by bots, wash trades, and flash loans that distort actual usage. Unlike Visa’s real consumer transactions, stablecoin volume often reflects repeated transfers between wallets, lacking true economic value. Claims of surpassing Visa’s $13.5 trillion annual volume may mislead, as low-fee blockchains allow easy manipulation of on-chain activity. Stablecoins have seen a surge in transaction volume, sparking debate over their real impact on the financial landscape compared to traditional payment systems. Why Experts Suspect Stablecoin Volume Might Be Inflated Recently, Chamath Palihapitiya, CEO of Social Capital, posted on X that the weekly transaction volume of stablecoins has exceeded that of Visa, reaching over $400 billion. He added that companies like Visa, Mastercard, and Stripe are actively embracing the trend. According to the data, in Q4 of 2024, the average weekly stablecoin transaction volume reached $464 billion. That’s significantly higher than Visa’s $319 billion. A Bitwise report estimates that stablecoins processed about $13.5 trillion in total transaction volume in 2024. This marks the first time stablecoin volume surpassed Visa’s annual total. At first glance, this seems like a major milestone, suggesting that stablecoins could reshape the future of global payments. Citigroup even projects that the stablecoin market could reach $3.7 trillion by 2030. Not everyone shares the enthusiasm. Some experts have warned that the reported stablecoin volume might be inflated. They argue it doesn’t reflect real economic activity and shouldn’t be directly compared with traditional systems like Visa. Joe, an advisor at Maven 11 Capital, pointed out that professional traders can generate hundreds of millions in volume using very little initial capital. “If you have $100,000 of USDC on Solana, you can do ~$136 million of ‘stablecoin volume’ for $1 in fees,” Joe said. He used Solana as an example. Solana is a…
The post Experts Question Validity of Stablecoin Volume Claims Amid Concerns of Manipulation appeared on BitcoinEthereumNews.com.
Experts caution that stablecoin transaction volumes may be inflated by bots, wash trades, and flash loans that distort actual usage. Unlike Visa’s real consumer transactions, stablecoin volume often reflects repeated transfers between wallets, lacking true economic value. Claims of surpassing Visa’s $13.5 trillion annual volume may mislead, as low-fee blockchains allow easy manipulation of on-chain activity. Stablecoins have seen a surge in transaction volume, sparking debate over their real impact on the financial landscape compared to traditional payment systems. Why Experts Suspect Stablecoin Volume Might Be Inflated Recently, Chamath Palihapitiya, CEO of Social Capital, posted on X that the weekly transaction volume of stablecoins has exceeded that of Visa, reaching over $400 billion. He added that companies like Visa, Mastercard, and Stripe are actively embracing the trend. According to the data, in Q4 of 2024, the average weekly stablecoin transaction volume reached $464 billion. That’s significantly higher than Visa’s $319 billion. A Bitwise report estimates that stablecoins processed about $13.5 trillion in total transaction volume in 2024. This marks the first time stablecoin volume surpassed Visa’s annual total. At first glance, this seems like a major milestone, suggesting that stablecoins could reshape the future of global payments. Citigroup even projects that the stablecoin market could reach $3.7 trillion by 2030. Not everyone shares the enthusiasm. Some experts have warned that the reported stablecoin volume might be inflated. They argue it doesn’t reflect real economic activity and shouldn’t be directly compared with traditional systems like Visa. Joe, an advisor at Maven 11 Capital, pointed out that professional traders can generate hundreds of millions in volume using very little initial capital. “If you have $100,000 of USDC on Solana, you can do ~$136 million of ‘stablecoin volume’ for $1 in fees,” Joe said. He used Solana as an example. Solana is a…
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