Fun

Could stablecoin volumes overtake Visa this quarter?

News Feed - 2024-05-06 01:05:08

Martin Young4 hours agoCould stablecoin volumes overtake Visa this quarter?Research firm Sacra predicts stablecoins will “eclipse” Visa on total payments volume in the second quarter of 2024, but Visa’s head of crypto doesn’t agree.1118 Total views4 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksStablecoins may finally overtake payment giant Visa in total payment volume this quarter, according to research firm Sacra. 


Visa’s head of crypto, however, disagrees.


In a blog post by Sacra co-founder Jan-Erik Asplund, the firm argued that stablecoins’ “extreme product-market fit for cross-border money movement” could see its total payments volume exceed Visa and reach over $4 trillion. 


“Stablecoins win on convenience, enabling cross-border payments to be completed any day of the week (rather than business days only), on speed (in minutes rather than 6 to 9 hours), and cost ($0.0037 vs. $12),” Asplund argued. 


“Today every major bank is working on using stablecoins to run their payment rails behind the scenes,” he added.Source: Sacra


Visa’s head of crypto, Cuy Sheffield, disagrees, arguing there was a “lot of noise” with stablecoin data and that on-chain transactions resulting from interactions with bots and automated programs “don’t resemble settlement in the traditional sense.”


Visa’s recently launched dashboard claims that as much as 90% of stablecoin transactions over the last 30 days have not been made by genuine users. 


The total volume of stablecoin transactions in April was around $2.2 billion. However, less than 10% of that volume ($149 billion) has been classified as genuine by the credit company, with bot activity and automated transactions by entities such as centralized exchanges accounting for the rest. 


Visa collaborated with Allium Labs to develop an adjusted stablecoin transaction metric for the dashboard, which was announced in late April.


“This adjusted metric aims to remove potential distortions that can arise from inorganic activity and other artificial inflationary practices,” states the company on its dashboard.Daily stablecoin transaction volume adjusted and unadjusted. Source: Visa/Allium


The dashboard applies two filters to its stablecoin data: a single directional volume filter that only counts the largest stablecoin amount transferred within a single transaction and an inorganic user filter that aims to remove bot activity and automatic transactions from large entities like centralized exchanges.


The dashboard, however, reports that the total monthly stablecoin transaction volume, spurious or otherwise, has almost doubled since the beginning of 2024, most of which is in Tether (USDT) and Circle’s USD Coin (USDC).


Related:Visa, Mastercard could be key drivers for crypto in the year ahead


Meanwhile, other payment giants are getting in on the act. PayPal launched its PYUSD stablecoin in 2023, and Stripe said that it would allow merchants using its platform to accept stablecoins for online transactions in April.


Also in April, Ripple announced plans to launch a United States dollar-backed stablecoin to compete with market leaders.


Current stablecoin market capitalization is around $161 billion, and daily trading volume is $37 billion, according to CoinGecko.


Cointelegraph reached out to Visa and leading stablecoin issuer Tether for further comments but did not receive an immediate response.


Magazine:The real risks to Ethena’s stablecoin model (are not the ones you think)# Visa# Adoption# Stablecoin# DeFiAdd reaction

News Feed

Tristan Greene5 hours agoHSBC trialing quantum-safe financial transaction network in the UKThe venerable British bank became the first to join BT (formerly British Telecom) and Toshiba’s secure quantum “metro” netw
US Financial Watchdog Fines Bitcoin Mixer Service for $60 Million
US Financial Watchdog Fines Bitcoin Mixer Service for $60 Million Larry Dean Harmon, founder and operator of early bitcoin mixing services Helix and Coin Ninja,
Report: China Will Become a Metaverse Tech Leader During 2023
Report: China Will Become a Metaverse Tech Leader During 2023 A report issued by Globaldata, a global consulting and data analysis company, predicts that China will become a leadin
GADA Sale on KICK․IO – Here’s Everything You Need to Know
GADA Sale on KICK․IO – Here’s Everything You Need to Know press release PRESS RELEASE.Spring is coming on strong for our launchpad. GADA, the first permissionless and communit
Prosecutors want $11B judgment, 40-50 years in prison for Sam Bankman-Fried
Derek Andersen1 hour agoProsecutors want $11B judgment, 40-50 years in prison for Sam Bankman-FriedSam Bankman-Fried asked for a maximum sentence of six and a half years, but he could have gotten over 100 years.388 Total
FBI Warns About Decentralized Finance Exploits and the Losses Associated With Them
FBI Warns About Decentralized Finance Exploits and the Losses Associated With Them The United States Federal Bureau of Investigation (FBI) has issued a public service announcement
$100K Bitcoin: S2F Author Confident With His Model, Suggests Six-Figure BTC Price by 2021
$100K Bitcoin: S2F Author Confident With His Model, Suggests Six-Figure BTC Price by 2021 Not too long ago, the author of the controversial bitcoin stock-to-flow
US Senator Lummis Thinks ‘Bitcoin Is Something That the Fed Should Hold on Its Balance Sheet’
US Senator Lummis Thinks "Bitcoin Is Something That the Fed Should Hold on Its Balance Sheet" Cynthia Lummis, the U.S. Republican senator from Wyoming, believes the Federal Reserve
Brayden Lindrea5 hours agoColombian Bitcoiner aims to orange-pill coffee lovers one bean at a timeThe CEO of Lightning Koffee launched the coffee startup in October with the aim of onboarding Medellín businesses onto Bi
Bithumb to Ban Foreign Traders Failing Mobile Phone Identification
Bithumb to Ban Foreign Traders Failing Mobile Phone Identification South Korean crypto exchange Bithumb said it will deny access to foreigners unable to verify their identities via
Nearly $13 Billion in Sales: Breaking Down 5 NFT Collections by Sales Volume 
Nearly $13 Billion in Sales: Breaking Down 5 NFT Collections by Sales Volume  Non-fungible token (NFT) assets have existed since at least 2014, but interest in them began to rise
Dogecoin Price Marks Local Bottom, Can Price Run 100% From Here Again?
Este artículo también está disponible en español. Crypto analyst Trader Tardigradehas revealed that the Dogecoin price has marked a local bottom. He further provided insi