Stablecoins' $35 trillion transaction volume raises questions about real utility
By John Nada·Jan 24, 2026·2 min read
Despite facilitating $35 trillion in transactions, only 1% of stablecoin use is for genuine payments. What does this mean for their future utility?
A recent report highlights an intriguing paradox in the stablecoin ecosystem: while these digital assets facilitated approximately $35 trillion in transactions last year, only about 1% of this amount was linked to actual payments, such as remittances and payroll. This statistic raises important questions about the underlying utility of stablecoins and their role in the broader financial landscape.
Stablecoins have been touted for their potential to bridge the gap between traditional finance and digital currency by offering price stability, which is often lacking in other cryptocurrencies like Bitcoin and Ethereum. However, the overwhelming majority of stablecoin transactions appear to be driven by speculation and trading rather than serving as a medium of exchange for everyday transactions. This disparity calls into question whether stablecoins are achieving their intended purpose amid a rapidly evolving market.
The report suggests that the vast majority of stablecoin use is concentrated in trading markets, where investors and traders utilize these assets to facilitate quick transactions and capitalize on price fluctuations across various exchanges. This trend underscores the need for more transparency and data on how these digital assets are being utilized.
The limited use of stablecoins for 'real world' payments may also reflect broader challenges within the cryptocurrency market. Regulatory scrutiny, market volatility, and consumer adoption hurdles are just a few factors that could be influencing the reluctance to use stablecoins for transactions like payroll or remittances. As stablecoins continue to evolve, the key challenge will be demonstrating their value beyond speculative uses.
As we look ahead, the future of stablecoins hinges on their ability to establish trust and utility among users. Regulatory frameworks are beginning to take shape, which may provide clarity and safety for consumers. However, the real question remains: will stablecoins transition from speculative instruments to reliable tools for everyday financial transactions? The answer to this question will likely determine their long-term viability in the financial ecosystem.