90% of ETH, Tron, Solana Stablecoin Transactions Are ‘Inorgranic'

[ABCbits]

90% of Ethereum, Tron, Solana Stablecoin Transactions Are ‘Inorgranic Activity’, Visa Says

Nearly all stablecoin transactions are tied to “inorganic activity,” according to payments giant Visa and enterprise blockchain data provider Allium.

The companies have launched a new data dashboard designed “to remove potential distortions that can arise from inorganic activity and other artificial inflationary practices,” and its adjusted figures reveal upwards of 90% of tracked transactions occur without human involvement... Read more here.


Visa's argument that transaction made by bot isn't organic somewhat makes sense to me. Although i also feel they said that since they want to reassure that Visa remain more popular option. Your opinion is greatly appreciated.

[Gurujebs]

Visa's argument that transaction made by bot isn't organic somewhat makes sense to me. Although i also feel they said that since they want to reassure that Visa remain more popular option. Your opinion is greatly appreciated.

This news looks more like Visa throwing tantrum in Tether company and other stable coins because they are gradually been used as an alternative to send and receive payment and perhaps Visa customers has shrink over the years. There is no way we can say that all transactions of stablecoin on chain are real but giving figure of 90% is fake and a shade to cryptocurrency.

They should focus on improving their payment framework or better still integrate crypto options for people just the way PayPal did and the two ecosystem are enjoying eachother instead of been enemies to each other.

[Lucius]

The very fact that a company like this is engaged in such analyzes speaks volumes about the fact that they want to prove something, or in other words show that ordinary people actually still use their services in a much higher proportion than they use stablecoins.

Now it's just a question of how much truth there is in that, but even if we assume that 90% is a bit of an exaggerated figure, I am of the opinion that the number of real users using cryptocurrencies (including stablecoins) is quite small compared to what companies like Visa achieve.

[Stompix]

This news looks more like Visa throwing tantrum in Tether company and other stable coins because they are gradually been used as an alternative to send and receive payment and perhaps Visa customers has shrink over the years.

I am willing to bet visa crypto cards see more real-life activity than any of those stable coins, in chasing and buying stuff.

Also, I don't understand why iemdiately on the defense and arguing they are lying, Bitcoiners have put Visa and Bnkas under a mcrisope for a decade, they have always blamed them for that and that, those of research papers, and now that they do the same imediately we're going to deny it?

If you do not trust Visa, then how about coindesk on how defi volume is inflated:
https://www.coindesk.com/layer2/2022/08/04/master-of-anons-how-a-crypto-developer-faked-a-defi-ecosystem/

Blindly trusting crypto and denying everything someone else says will never make you see the complete truth!

Now it's just a question of how much truth there is in that, but even if we assume that 90% is a bit of an exaggerated figure, I am of the opinion that the number of real users using cryptocurrencies (including stablecoins) is quite small compared to what companies like Visa achieve.

Well, all the transactions in the Bitcoin chain have surpassed the daily average on Visa, but we're not close to the peak shopping day...so...
Also, I don't know a single real life shop or pub that accepts USDT, I know 5 that d Bitcoin, so again, I'm pretty sure most of that tx are arbitrage bots playing between exchanges and markets, common, no sane user is able to do over 1000 transactions a month and why would he.

[yhiaali3]

It is possible that Visa's words are correct, given that most of the transactions on these networks are carried out automatically through smart contracts and also relate to DeFi projects, farming, staking, etc., and all of these are done automatically or by robots and not human transfers.

But I don't know why the comparison here? I don't know why Visa cares about the volume of inorganic transactions on these networks? These networks are used for multiple different purposes and not for one purpose, while Visa is used for the purpose of payment only.

[ABCbits]

Now it's just a question of how much truth there is in that, but even if we assume that 90% is a bit of an exaggerated figure

Looking at 2 filter mentioned on their website, i think it's safe the percentage is a bit exaggerated. If i understand it correctly, it exclude TX made by whale/rich people and short term/arbitrage trader who doesn't use bot.

But I don't know why the comparison here? I don't know why Visa cares about the volume of inorganic transactions on these networks? These networks are used for multiple different purposes and not for one purpose, while Visa is used for the purpose of payment only.

Have you read their blog post on https://usa.visa.com/visa-everywhere/blog/bdp/2024/04/24/making-sense-of-1713984605043.html? It's one of reason i said "Although i also feel they said that since they want to reassure that Visa remain more popular option.".

[TomPluz]

Visa's argument that transaction made by bot isn't organic somewhat makes sense to me. Although i also feel they said that since they want to reassure that Visa remain more popular option. Your opinion is greatly appreciated.

I fully agree since there is no arguing with facts presented by Visa and Allium. Though, of course, this can be self-serving since Visa is presenting this to make its own platform get a better limelight as many of us might be thinking and assuming that stablecoins can soon be replacing what Visa and similar outfits are providing. However, it should be noted that the replacement can be coming but it may not be happening soon. The market that Visa and Mastercard, for that matter, are occupying is quite so huge and it can take a lot of years and yes even decades for them to fall down in grace.

[Faisal2202]

Visa's argument that transaction made by bot isn't organic somewhat makes sense to me. Although i also feel they said that since they want to reassure that Visa remain more popular option. Your opinion is greatly appreciated.

The word "Inorganic Activity" is also new to me, but I do understand now what its meaning. The automated transactions are inorganic while in which humans are directly involved are organic. BTW I am shocked to see the number of inorganic transactions they are $51.6 Billion dollars, and when they remove these inorganic activities from the overall volume the organic turns out to be only $4.6 Billion dollars.

The only conclusion from this news is, that they just want to show off that they can distinguish between organic and inorganic activities, but for what purposes, I mean what use of this data to them, I can't think of any benefit here, if anyone else can shed some light.

In my opinion they just want to remain more transparent, and want to show the credibility, maybe next time they fill there sheet they might exclude the inorganic activities from it, but the point is, are these inorganic tx are not real or considered and why not?

[yhiaali3]

But I don't know why the comparison here? I don't know why Visa cares about the volume of inorganic transactions on these networks? These networks are used for multiple different purposes and not for one purpose, while Visa is used for the purpose of payment only.

Have you read their blog post on https://usa.visa.com/visa-everywhere/blog/bdp/2024/04/24/making-sense-of-1713984605043.html? It's one of reason i said "Although i also feel they said that since they want to reassure that Visa remain more popular option.".

Yes, this is exactly what they are implying, and it is true in any case. Since Visa and traditional payment services enjoy great government support around the world, as they are centralized and completely subject to the conditions of governments, they will remain accepted by all governments that will seek to promote these services at the same time as they put pressure on crypto services.

Therefore, it is natural to find a large number of people turning to using Visa and similar services to avoid legal problems with governments.

[Captain Corporate]

Oh, so a company that is making billions of dollars every year, and not even have all that much cost, just only taking money from the people all over the world for giving each other money, thinks that they are actually capable of objectively looking into tether and other stuff and see what is going on there. I mean even if they are telling the truth, nobody will believe them, and they should be aware of it, provide some good proof to the world and pay a few crypto websites to share this news, with proof, so that it would take attention. Otherwise this is just some transaction company talking shit about other transaction alternatives.

[hugeblack]

The article focused on two aspects


 - The first is comparing smart contracts to traditional systems and trying to say that smart contracts are bad and cryptocurrency developers must integrate their smart contracts into Visa, which is an attempt by them to benefit from the growing sizes of these currencies.
 - The second is that the large profits achieved by USDT are due to Bitcoin and not due to the increase in the number of users.


The article is a little biased, but that does not mean that stablecoins are good.

Tether Netted $4.52 Billion Q1 Profit Thanks To Bitcoin Gains
Tether posted a record-shattering $4.52 billion profit in the first quarter—an unusually large sum even for the highly successful and dominant stablecoin provider.

[ABCbits]

The only conclusion from this news is, that they just want to show off that they can distinguish between organic and inorganic activities, but for what purposes, I mean what use of this data to them, I can't think of any benefit here, if anyone else can shed some light.

I think we can make guess of their purpose by reading their blog post on https://usa.visa.com/visa-everywhere/blog/bdp/2024/04/24/making-sense-of-1713984605043.html. Visa wants to say stablecoin is still far from reaching Visa's volume.

[joniboini]

I guess we can say the targeted audience is financial institutions instead of retail buyers then? The writer is the head of crypto at Visa, whatever that position means. Not sure why they need to clarify the idea that stablecoin is going to surpass Visa's volume this soon though. I believe crypto payment gateway is still niche compared to traditional fiat gateway for financial institutions or small/medium businesses. CMIIW.

[Faisal2202]

I think we can make guess of their purpose by reading their blog post on https://usa.visa.com/visa-everywhere/blog/bdp/2024/04/24/making-sense-of-1713984605043.html. Visa wants to say stablecoin is still far from reaching Visa's volume.

Now it makes sense, +1 for you dude. Actually, I was confused because Visa is a financial infrastructure or platform providing financial services or allowing us to perform financial activities, it is not a currency so why they are comparing themselves with Fiat or Bitcoin? As Fiat and Bitcoin is a currency, assets or whatever a person call them. But they are not providing financial infrastructure there aim was not to? or is it?

That's why I asked the real purpose of this data, well, they made this dashboard with the help of Allium labs, which seems to me a good thing, as such things must need to be brought in front of our eyes, now with the help of this dashboard they can still remain in the third place. Nice move BTW.

[ABCbits]

I think we can make guess of their purpose by reading their blog post on https://usa.visa.com/visa-everywhere/blog/bdp/2024/04/24/making-sense-of-1713984605043.html. Visa wants to say stablecoin is still far from reaching Visa's volume.

Now it makes sense, +1 for you dude. Actually, I was confused because Visa is a financial infrastructure or platform providing financial services or allowing us to perform financial activities, it is not a currency so why they are comparing themselves with Fiat or Bitcoin? As Fiat and Bitcoin is a currency, assets or whatever a person call them. But they are not providing financial infrastructure there aim was not to? or is it?

That's why I asked the real purpose of this data, well, they made this dashboard with the help of Allium labs, which seems to me a good thing, as such things must need to be brought in front of our eyes, now with the help of this dashboard they can still remain in the third place. Nice move BTW.

As for other fiat service and stablecoin, i would guess it's because probably Visa know some users only care about make payment or sending fiat (or it's equivalent) to another user at low fee or high convenience. Other fiat service might offer lower fee, while stablecoin on altcoin network have very low TX fee.