Stablecoin transaction volume – adjusted for inorganic activity such as bots – reached an all-time high last quarter.

Impressive. Of the growth of stablecoins over the last year or so, what constitutes the main use case? Crypto trading/purchases or cross-border transfers for trading in goods and services?

Stablecoins have found product market fit and this chart shows it.

Stablecoin activity is largely uncorrelated to crypto market cycles – organic, non-speculative use appears to be widespread and growing even as crypto trading volume fluctuates.

Stablecoin activity is largely uncorrelated to crypto trading/purchases, which indicates there are other organic use cases emerging.

Stablecoin activity is largely uncorrelated to crypto trading/purchases, which indicates there are other organic use cases emerging.

https://warpcast.com/darenmatsuoka/0x1881d40a

It's mainly yield farming. It's all wrappers on the fed funds rate. When that comes down TVL does too and heads down the risk curve. It's counter-cyclical. Perhaps w/ stablecoin bill different verticals like payments/corp treasuries pick up and expand but this is all the same old yield chasing.

Really interesting point and makes sense, especially for those in jurisdictions that lack access to dollars (for whatever reason, legal or otherwise)