On-chain transactions do not equate to real payments, crypto transactions are dominating

TD Economics believes that crypto transactions are the overwhelming part of stablecoin activity: about $23 trillion related to transactions, compared to about $4 trillion related to payments, causing payments to account for only around 6% of total stablecoin activity.

According to TD Economics, the large share belonging to crypto transactions means that the role of stablecoins as a "payment medium" remains secondary. The report also emphasizes that the flow of stablecoin transfers across borders is still very small compared to the total volume of cross-border remittances worldwide.

Professor of Law Hilary J. Allen cites analyses showing that about 88% of the value of stablecoin transactions in 2024 is related to crypto transactions, while only about 6% is tied to payments. She also noted that 1.9% of Americans have used any type of cryptocurrency for payments in 2024.