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VADODARA, February 2, 2026 — A Korea Institute of Finance study reveals a stark reality in the stablecoin ecosystem. According to the report, retail payments account for a mere 0.1% of all U.S. dollar-pegged stablecoin transaction volume. This latest crypto news a market structure dominated by automated liquidity, not consumer adoption.
Munhwa Ilbo reported the findings from the Korea Institute of Finance's study, "Trends and Implications of Stablecoin Utilization as a Payment Method." The data is surgical. Total transaction volume for dollar stablecoins reached $5.42 trillion as of November 2025. However, $4.21 trillion, or 77.6%, was attributed to automated bot activity.
Of the remaining $1.21 trillion in general transactions, retail payments amounted to just $7.5 billion. This creates a retail payment share of approximately 0.14% of total volume. Market structure suggests this is a statistical rounding error. The primary source, the Korea Institute of Finance, provides a clear forensic snapshot.
Historically, stablecoins like Tether (USDT) and USD Coin (USDC) emerged post-2017 as settlement layers for crypto exchanges. Their growth mirrored the expansion of decentralized finance (DeFi) and automated market makers after 2020. This report confirms that foundational use case has not evolved.
In contrast, payment-focused narratives gained traction during the 2021 bull market. Proponents pointed to Visa's pilot programs and merchant adoption. The data now invalidates that retail momentum. Underlying this trend is a persistent Fair Value Gap between speculative utility and real-world application.
Related developments in the current "Extreme Fear" market sentiment highlight similar structural pressures. For instance, significant ETH positions face liquidation risks, and whales are withdrawing assets from exchanges, reflecting a broader liquidity recalibration.
The technical implication is a Liquidity Grab by automated systems. Bots executing arbitrage and yield farming strategies create the illusion of massive transaction volume. This activity clusters around specific Order Blocks on decentralized exchanges, not retail point-of-sale systems.
From a policy perspective, this data directly impacts regulatory frameworks. The Federal Reserve and other regulators assessing stablecoin risks now have empirical evidence. It shows minimal consumer protection exposure from retail payments but significant systemic risk from concentrated automated trading.
Market structure suggests stablecoins act more like high-speed settlement rails than consumer cash equivalents. This technical reality challenges legislative efforts modeled on traditional payment systems.
| Metric | Value | Context |
|---|---|---|
| Total Stablecoin Volume (Nov 2025) | $5.42 Trillion | Korea Institute of Finance Data |
| Volume Attributed to Bots | $4.21 Trillion (77.6%) | Defines market liquidity source |
| Retail Payment Volume | $7.5 Billion (0.14%) | Core finding of the study |
| Crypto Fear & Greed Index | 14/100 (Extreme Fear) | Current market sentiment proxy |
| Bitcoin Market Price | $76,991 (-2.14% 24h) | Broader market condition reference |
This matters for portfolio allocation and regulatory strategy. Institutional liquidity cycles depend on stablecoins as the primary on-ramp and off-ramp. The 77.6% bot dominance confirms this infrastructure is built for machines, not people. Retail market structure remains negligible.
Consequently, investment theses predicated on mass consumer adoption of stablecoins for payments face a data-driven headwind. The $7.5 billion retail figure is less than the daily volume of many major crypto exchanges. This represents a critical failure to achieve product-market fit outside speculative finance.
"The data is unambiguous. Stablecoins have become the high-frequency trading fuel of the crypto ecosystem, not its digital cash. This report from the Korea Institute of Finance should recalibrate expectations for payment use cases. The Volume Profile is almost entirely institutional and automated." – CoinMarketBuzz Intelligence Desk
Market structure suggests two primary scenarios for the next 12 months. The institutional outlook remains tied to DeFi and trading infrastructure, not retail expansion.
On-chain data indicates the 5-year horizon will likely see continued growth in automated volume. Regulatory clarity may spur some retail experimentation, but the existing Order Block infrastructure favors bots. The path for consumer payments remains obstructed by technical complexity and lack of merchant incentives.

Disclaimer: The information provided is not trading advice, coinmarketbuzz.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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