The $35 Trillion Stablecoin Paradox: Only 1% Used for Real Payments

Stablecoins settled a staggering $35 trillion last year, but don't let the headline numbers fool you. A new report reveals that only around 1% of that massive volume represented genuine payments like remittances, merchant purchases, or payroll.

Analyzing the Stablecoin Payment Volume 2025

The gap between hype and utility is wider than many anticipated. While the crypto industry touts stablecoins as the future of money, the vast majority of the $35 trillion flow is purely speculative. Most transactions involve moving funds between exchanges or providing liquidity for DeFi protocols, rather than paying for real-world goods and services.

According to the data, genuine economic activity accounted for just a fraction of the total. This suggests that stablecoins are still primarily a 'trading tool' rather than a 'medium of exchange' for the average consumer. The friction of gas fees and wallet management continues to hinder mass adoption in the fintech space.

The Road to Retail Adoption

For stablecoins to break out of their 1% niche, they need to bridge the gap with traditional finance. Companies like Visa and PayPal are making strides, but regulatory clarity and ease of use remain the primary bottlenecks for global remittance and payroll integration.