A recent report by Visa and Allium Labs indicates that the majority of stablecoin activity involves automated bots and traders rather than human users.Visa claims that out of the reported $2.2 trillion in April transactions, less than 10% were driven by actual people.Despite the significant bot-driven activity, the stablecoin market cap remains steady at around $150-$160 million, with Tether (USDT) and USD Coin (USDC) leading the market.Visa's study also highlights a rise in monthly active users, reaching 27.5 million across various blockchain networks.Research firm Sacra predicts that stablecoins could surpass Visa's transaction volume in Q2 2024.

According to a recent report by Visa and Allium Labs, the stablecoin market might not be as extensive as previously believed. The findings suggest that the vast majority of stablecoin transactions are not driven by human interaction. In fact, less than 10% of all stablecoin transactions are considered organic, originating from real users.

Visa's head of crypto, Cuy Sheffield, suggests that most stablecoin transactions are influenced by what he calls "a lot of noise." In April 2024 alone, the stablecoin market processed a staggering $2.2 trillion worth of transactions. However, upon closer examination, it becomes apparent that only about $265 billion of that total came from actual payment activity by individuals.

Visa's research involved filtering out bot-influenced and large-scale trader transactions to determine the number of individuals involved and the corresponding transaction amounts. It is worth noting that the current stablecoin market cap is estimated to be between $150 million to $160 million according to CoinMarketCap. Two leading stablecoins, Tether's USDT and Circle's USDC, dominate the market with a combined market share of over 90%.

Despite challenges in accurately tracking and monitoring the stablecoin market, Visa's study reveals a consistent increase in monthly active stablecoin users, reaching approximately 27.5 million users across various blockchain networks. Pranav Sood, an executive at Airwallex, suggests that the stablecoin market still has substantial room for growth as it is still in its early stages as a payment avenue.

In an interesting prediction, research firm Sacra suggests that stablecoins will surpass Visa's total payment volume in the second quarter of 2024, despite the noise and complexities associated with tracking this market. As the stablecoin market continues to evolve and integrate into the financial landscape of both crypto and traditional finance (TradFi), there is a growing need for refined data analytics to better understand the market and provide a secure environment for investors and traders.

Disclaimer:
This article aims to deliver accurate and up-to-date information; however, Voice of Crypto will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so it is advised to conduct thorough research and make independent financial decisions.

#Stablecoins #stablecoin #Visa #Crypto2024 #cryptocurrency

#JeromePowell , chairman of the Federal Reserve System (Fed), attended a hearing in the Senate from 00:00 on the 8th, Korea time, and said that non-banking operations in the cryptocurrency industry should be regulated the same as banks. "Same regulation for equal businesses is my guiding principle," he added. "The #Fed is committed to regulation tailored to banks."

“I think #Stablecoins and some public #blockchains that are vulnerable to fraud and money laundering are dangerous, but traditional financial products In a similar way, appropriately regulated stablecoins may exist." Prior to this, he said that non-banking businesses in the cryptocurrency industry should be subject to the same level of regulation as banks.

“It is important for the United States to come up with viable regulation for digital assets (cryptocurrency), but the Fed is involved. I am not in a position to do that,” he said. He also said, "In the past year, I have witnessed various incidents in the cryptocurrency market, such as large-scale fraud and the collapse of exchanges and banks. Personally, I think #cryptocurrency is an innovative field.

In the ever-evolving world of cryptocurrency, investors are always on the lookout for the best buying opportunities. Recently, data provided by CryptoQuant has shed light on a potential strategy for uncovering potential buyers through stablecoin deposit analysis.

According to the data, there was a peak in stablecoin deposit transactions on March 12th at OKX, Bitfinex, and Kraken exchanges. This peak coincided with a dip in the market, making it an ideal buying opportunity for investors.

@azcoinnews

Further analysis revealed that Coinbase had the highest number of stablecoin deposit transactions in March, indicating that it became a buyer in the spot market. This suggests that Coinbase is actively looking to invest in cryptocurrencies and may be a good indicator of market trends.

However, the data is not without its caveats. The number of stablecoin deposits may be affected by recent news coverage, which could shift the demand for stablecoins. Additionally, recent turmoil on Binance has led to fluctuating stablecoin deposit transactions, indicating market confusion.

Despite these uncertainties, the data provided by CryptoQuant offers valuable insights for cryptocurrency investors. By monitoring stablecoin deposit transactions, investors can potentially uncover market trends and identify potential buying opportunities.

#Stablecoins #USDC #USDT #crypto2023 #azcoinnews

This article was republished from azcoinnews.com

The bitcoin market has grown as a result of #SiliconValley Bank, the largest banking crisis since 2008. When the business revealed its cash were retained in the bank, #Circle and its stablecoin USDC were negatively impacted. To secure their assets, panicked cryptocurrency investors and communities sell tokens, which triggers unfortunate outcomes.

On March 11, when USDC and related stablecoins were being dumped in the crypto market, a USDC user who exchanged 2 million USDC into #USDT on the chain was accidentally blocked by an MEV because no slippage was set.

After paying $45 in gas fees and $39,000 in MEV bribes, the bot generated a net profit of $2.045 million. As a result, the user traded 2.08 million USDC but only received 0.05 USDT.

Investors started exchanging their USDC tokens for other #Stablecoins like USDT in order to reduce losses. This is due to the stablecoin maintained by Circle losing its $1 peg today. In the last 24 hours, there has been a significant increase in the amount of stablecoins burned on controlled exchanges (CEX) and converted into other safer assets.

Investigations conducted on-chain revealed that this user had put the funds in a liquidity pool (LP), a popular bitcoin passive income model. The user may have exchanged his LP tokens for USDT for a 6% slippage. Drawn and burned on centralized exchanges (CEX) rose in the previous 24 hours as users sought to convert to other safer assets, but the user made the wrong choice.

Slippage is the difference between the transaction price and the actual conversion the trader actually received. Trades outside of this range can go ignored by setting slippage in the range of 0.5–10%. This user lost money on the trade because they made the fatal error of trading a lot of assets without allowing for slippage. The previous episode shows how a human error can cause irreparable financial damage.

The lowest price today is $0.88, while #USDC is currently trading at $0.91.

Circle CEO Jeremy Allaire has taken to Twitter to share his reflections on the market dynamics following the collapse of Silicon Valley Bank (SVB). In his tweet, he highlights the large-scale risk-off from USD that is exposed to US banks and US regulatory risk, which is leading to deep market anxiety.

Allaire also notes that players who have had the strongest position with US regulation and US banking system integration are now considered “un-safe”, with fears that assets could be stranded.

Twitter: @azcoinnews

The broader macro risk is driving rotation from USD into BTC/ETH, which Allaire says has already been commented on, so he won’t say more. He also urges US policy makers to think very carefully about what happens next as market participants are shifting into platforms with no oversight, totally opaque bank and risk exposures, and histories of lax financial risk/integrity controls. He warns that this doesn’t end well and that there is serious risk of seeing an entire strategic technology arena slip away from US leadership.

Despite the market turbulence, Circle is committed to operating within a regulatory perimeter, held to high standards, with the highest level of transparency in the industry, and the strongest financial market infrastructure partners. Allaire notes that USDC has not missed a beat, and they have never failed to mint or redeem USDC for $1, including during the past weeks’ stress test. In the past year, they have redeemed $192.4B USDC at $1 and issued $176.9B at $1.

Circle continues to add more transit and settlement banking partners to help the industry get back to a world where always-on digital dollars on blockchains can be integrated into 24/7/365 issuance and redemption. Allaire also mentions that USDC as a protocol and digital currency continues to function on public chains, protocols, and wallets uninterrupted. He concludes by saying that now more than ever, we are seeing the power of new, global, transparent, secure, and always-on blockchain-native financial infrastructure.

The collapse of SVB has caused significant market anxiety, but Circle’s commitment to operating within a regulatory perimeter and maintaining high standards should give investors some confidence. However, the broader macro risk and fear of US regulatory actions on crypto could lead to more players shifting into platforms with no oversight, putting their assets at risk. US policy makers need to carefully consider the consequences of their actions and ensure that the US doesn’t lose its leadership in the strategic technology arena.

#Circle #USDC #Stablecoins #crypto2023 #azcoinnews

This article was republished from azcoinnews.com

Hong Kong is aiming to become a leading hub for Web3 in Asia and beyond, with the government providing a comprehensive support system to enterprises passionate about pioneering and start-ups in this area.

The government has a high-level commitment to developing the sector and is providing a facilitating environment with timely and necessary guardrails to mitigate actual and potential risks in accordance with international standards, in order to promote the sustainable and responsible development of the virtual asset (VA) and Web3 sector in Hong Kong.

The Hong Kong Monetary Authority is working on a regulatory regime for “stablecoins” with an aim to implementing the relevant regulation in 2024. As of end-February 2023, Invest Hong Kong has received expressions of interest from over 80 virtual asset-related companies interested in establishing their presence in Hong Kong, including VA exchanges, blockchain infrastructure companies, blockchain network security companies, virtual currency wallets and payment companies, as well as other projects on building the Web3 ecosystem.

As of end-February 2023, 23 companies from the Mainland, Canada, EU (European Union) countries, Singapore, the UK (United Kingdom) and the US (United States) have indicated to Invest Hong Kong that they planned to establish their presence in Hong Kong.

The Hong Kong Government is also establishing a licensing regime for VA service providers which will commence operation in June 2023. Through the establishment of a comprehensive and clear regulatory system, they are expecting more quality VA enterprises to set up businesses in Hong Kong or to seek development opportunities in Hong Kong.

On market development, the securities rules in Hong Kong have been advanced to allow regulated intermediaries to offer trading of eligible VA Futures ETFs to retail investors, making Hong Kong a pioneer in the Asian market. Three VA Futures ETFs have already been listed and traded on the Hong Kong Stock Exchange.

Furthermore, the Hong Kong government is collaborating with the Mainland on testing the use of digital Renminbi for making cross-boundary payments in Hong Kong, and working with a number of central banks on a multiple central bank digital currency bridge project to expedite cross-border payments. The Hong Kong government is also looking into the issues pertinent to possible issuance of e-Hong Kong dollar.

The Cyberport in Hong Kong has housed a community of start-ups and technology companies, including a number of Web3-related technology companies in areas including financial technology, smart living, and digital entertainment. In light of the development of Web3, Cyberport established the Web3 Hub@Cyberport early this year.

In addition, the Hong Kong government has proposed a fintech internship scheme for post-secondary students in the 2023 Budget. Subsidies will be provided to participating students in Hong Kong and the GBA (Guangdong-Hong Kong-Macao Greater Bay Area). The scheme facilitates eligible students to acquire practical work experience in fintech enterprises in Hong Kong or the wider GBA, and helps them develop an early interest in pursuing a career in fintech after graduation.

The Financial Secretary announced in this year’s Budget that the government will set up a Task Force on VA Development to examine the market situation, development opportunities, regulation needs and ecosystem of the VA sector in Hong Kong, aiming to formulate proposals on how to promote the sustainable and responsible development of the sector. Also announced in this year’s Budget, $50 million will be allocated to expedite the Web3 ecosystem development.

#hongkong #Stablecoins #hongkonghub #azcoinnews #azcoin

This article was republished from azcoinnews.com