Could stablecoin eventually overshadow Bitcoin usage

[X-ray]

Stablecoin works like CBDC, endorsed to replace SWIFT and the target audience is ordinary people who transact with fiat daily.

Bitcoin also has become more of a store of value right now, competing with gold as hedge against inflation.

The fact that stablecoin is backed by fiat, which have higher chance of easily being approved as legal tender, means stablecoin has high chance to overshadow bitcoin usage but it's entirely for different sets of audience.

Stablecoin could but I wouldn't worry.

[TedMosby]

Let's compare Bitcoin, Stablecoins, Visa, and Mastercard annual transaction volume and number of transactions.





Volume of Annual Transaction

In 2025, stablecoins processed $33 trillion in on-chain transaction volume — surpassing the combined $25.5 trillion handled by Visa and Mastercard in the same period [1].

Bitcoin recorded about $18 trillion in annual transaction volume in 2025, based on NewHedge data. Other estimates placed the figure closer to $25 trillion. Visa reported $16.7 trillion in total payment volume for the year, while Mastercard reported $10.63 trillion [2].

Number of Annual Transaction

... 329 billion total Visa-branded transactions were processed by Visa or other networks, equating to an average of 901 million transactions per day [3].

Bitcoin (BTC) network transactions per day 447,561 [4].

We facilitated more than 175 billion transactions, each representing someone, a business owner or consumer, who entrusted us with the responsibility to protect their money and their data [5].

Stablecoin transaction volume is almost 16b without adjustments, falling to just under 2b when observing real economic transactions [6].

Compared to Bitcoin, the number and volume of annual transactions of stablecoins are bigger than Bitcoin. However, when talking about cryptocurrency in general, it will never overshadow Bitcoin, because people see stablecoins as just a new form of fiat. When people say invest in crypto, I think people never think about investing money in digital fiat.





Source:
[1] https://www.forbes.com/sites/digital-assets/2026/04/14/stablecoins-just-out-processed-visa-now-what/
[2] https://www.mexc.co/news/1061561
[3] https://annualreport.visa.com/chairman-and-ceo-message/default.aspx
[4] https://www.statista.com/topics/2308/bitcoin/
[5] https://www.mastercard.com/us/en/news-and-trends/stories/2026/Michael-Miebach-ceo-2025-annual-letter-to-shareholders.html
[6] https://digital-assets.fct.bcg.com/

[BitBrainers]

Stablecoins like Tether are the trojan horses for people to get used to concepts like "blockchain", "private keys" and "addresses" so they can feel confident to switch to bitcoin when the US dollar experiences hyperinflation.

The trojan horse framing is the most accurate way to describe it. Stablecoins onboard people to blockchain infrastructure without asking them to accept volatility first. That is not a threat to Bitcoin. It is a funnel. The person who starts using USDT for remittances is one dollar devaluation event away from asking why they are holding digital dollars instead of the real thing. Stablecoins do the education work Bitcoin cannot do alone.

[m2017]

Even though Bitcoin dominates attention, stablecoins seem to dominate actual day-to-day usage in many parts of the world.

Stablecoins have displaced bitcoin as electronic money. Why? Because they're convenient, unless used for long-term storage.

In some countries, people barely use Bitcoin for payments anymore, they use stablecoins instead.

I see this a lot too, and stablecoins are everywhere. Honestly, I've never seen or heard (though that's not an objective indicator) anyone recently offering to send bitcoin as payment.

Could stablecoins eventually overshadow Bitcoin in practical usage?

It seems to me that this process is already actively underway.

🔹 Why Stablecoins Are Becoming So Popular
The biggest reason is simple: stability.Most people are not trying to become macroeconomic philosophers when they use money.They just want Something that holds value short-term, Something predictable and Something that is  easy to transact with and honestly, Bitcoin’s volatility can make that difficult sometimes.If someone receives payment today and Bitcoin drops 10% tomorrow, that volatility matters — especially in countries where people are already dealing with economic pressure.Stablecoins remove that uncertainty.You can Send value quickly, Trade easily, Hold digital dollars, Avoid local currency instability
without constantly worrying about market swings.That practicality is a huge reason stablecoins have grown so aggressively.

True, stablecoins solve these problems better than bitcoin. This explains the majority's choice.

🔹 Bitcoin and Stablecoins Are Solving Different Problems. I think this is where the conversation becomes more interesting.Bitcoin was never really optimized for price stability.Its value comes from things like Scarcity,Decentralization,Monetary independence,Censorship resistance
People often compare Bitcoin to digital gold for that reason.Stablecoins on the other hand prioritize usability and stability.So in a way Bitcoin focuses more on sovereignty while Stablecoins focus more on convenience and depending on where someone lives, one may matter more than the other.

Again, you are right, because for some purposes (preservation of value) bitcoin is better suited, and for others (current means of payment) stablecoins are better suited.

🔹 In Reality, Many People Already Use Them Differently
What’s interesting is that many users already separate these roles naturally.Some people Hold Bitcoin long-term but use stablecoins for everyday activity
Especially in places with inflation or unstable banking systems, stablecoins can feel more practical for daily life.You don’t need to worry about Sudden volatility, Pricing confusion, Receiving less purchasing power overnight
For merchants, freelancers, and P2P traders, that stability matters a lot.

This is the "magic" of the market, which itself puts everything in its place, and therefore, it is pointless to impose the "correct" use of this or that asset.

🔹 But Stablecoins Come With Their Own Trade-Offs
This is the part I think people sometimes overlook.Stablecoins may feel more practical, but most of them still rely heavily on centralized systems like Issuing companies, Banks, Fiat reserves and Regulatory approval
That means users are still depending on institutions and trust.Bitcoin is different because no company controls it.

People turn a blind eye to the shortcomings of stablecoins until they're personally affected (for example, by account freezing). Stablecoins "give" people what they need (better than bitcoin), and that's why they're in demand.

🔹 Could Stablecoins Eventually Dominate Usage?Honestly, I think they already dominate certain types of usage.If wnd for some people, those things matter more than stability.

As I said above, this is already happening and I believe it will only increase.

[Arenga pinnata]

Stablecoins have indeed surpassed Bitcoin in terms of usage. However, people who use stablecoins do not intend to hold onto them. this is in contrast to those who hold Bitcoin, who do intend to hold it for a certain period of time as an investment or as a store of value. Moreover, Bitcoin is no longer widely used as a daily medium of exchange and is now more geared toward long-term investment.

However in terms of market cap, bitcoin still leads the pack. according to several sources, Bitcoin’s current market capitalization exceeds $1 trillion, while the total market cap of all stablecoins combined is just over $300 bllion.

but the two cannot be compared directly, as they are used by people for different purposes. Thus, each excels in distinct areas.

Bitcoin will always reign supreme as the king of cryptocurrencies with the largest market cap and for long term investment.
Meanwhile, stablecoins can be considered the king of daily transactions.

[asriloni]

That's how things will work until the next decade. People will always use the stable coin as a medium of exchange while they will treated the btc as a commodity like Gold. So they will hold their btc hold for investment and hedging purpose.

I admit stable coin usage is even surpassing Bitcoin with some global company such as Meta, Stripe or even Visa already adopted it as a payment option. So i guess they don't intend to use bitcoin as a payment system due to the volatility.

Nevertheless, the more usage of stable coin doesn't impact bitcoin. It's because bitcoin is also using stable coin as a medium of exchange when someone wants to cv their bitcoin to the cash. So i don't think this to be a something serious that needs to be addressed because they'er good in their own role.

[Alpen]

Unless a true "Bitcoin economy" emerges, stablecoins will inevitably eclipse BTC in transactions and eventually swallow the crypto space.

Look at El Salvador—it was a bold experiment. Since the country lacks its own national currency, they tried to replace the USD with Bitcoin. If that had succeeded, BTC could have become the primary settlement currency for every nation without its own fiat.

While many companies try to offer goods and services for BTC, consumers are still hesitant to use it for payments. Let’s be honest: Bitcoin isn’t practical for daily use because it drops by 80% with frightening regularity. No one wants to save in an asset that is almost guaranteed to lose half its value at some point, no matter how much it might grow in the long run.

[Darker45]

In a way, we're comparing apples and oranges, and you've stated it in your post.

It's impossible for stablecoins to overshadow Bitcoin because stablecoins can't offer what Bitcoin offers. Stablecoins can't compete with Bitcoin. Bitcoin doesn't compete with another currency in terms of stability. They belong to different orders.

If you want a fair comparison, then perhaps you compare Bitcoin with other currencies claiming to be decentralized. As to stablecoins, perhaps they should be compared with CBDCs and other digital fiat currencies.

[Somegory]

It's far easier to accept stable coin in businesses around the world than Bitcoin because it's stable, I am seeing some websites accepting stable coins more than Bitcoin already but I believe they lack what and what to do if they accept Bitcoin.

Stable coin is nothing compared to Bitcoin, and it's never going to overshadowed anything, stablecoins works exactly like the dollar but only in its digital form, that's all there is about dollar and stable coins.

Bitcoin brings scarcity, gold like, and insane appreciation in value, there will never be anything like Bitcoin, and nothing is going to take over Bitcoin because of any reasons.

[Janette014]

‎I don't think there's any reason to compare Bitcoin to stablecoin or think one will over shadow the other from my own point of view, because they function differently with no competition and serve different purposes.

‎Most Bitcoin holders are also stablecoin users. Bitcoin is for growth with a higher risk factor but higher profit, basically for long term usage. This means instead of an individual saving for a long term goal (future purposes) in a stablecoin with no growth,  it's profitable or smart to invest in Bitcoin. ‎Which means within those years, you have a higher chance of more profit, let's call it reward.

While stablecoins are for short term savings, trading and transition purposes, they're best for short term usage. ‎Where I see comparison is between stablecoins and traditional banking, which stablecoins are taking over due to inflation and others disadvantages. The value rate is lower, and the majority of the people are diverting from saving in traditional to stablecoin.

[fuguebtc]

It's far easier to accept stable coin in businesses around the world than Bitcoin because it's stable, I am seeing some websites accepting stable coins more than Bitcoin already but I believe they lack what and what to do if they accept Bitcoin.

I think that if they know about stablecoins, it means they also know about crypto and bitcoin. I think the reason some people only accept stablecoins instead of Bitcoin is because of legal constraints, volatility. Among these, legal obstacles are perhap the biggest.

Stable coin is nothing compared to Bitcoin, and it's never going to overshadowed anything, stablecoins works exactly like the dollar but only in its digital form, that's all there is about dollar and stable coins.

Bitcoin brings scarcity, gold like, and insane appreciation in value, there will never be anything like Bitcoin, and nothing is going to take over Bitcoin because of any reasons.

As you said, bitcoin is like gold. That means they are two different types of assets, and comparing them is pointless.

Stablecoin and Bitcoin do not compete with each other and will not replace each other.

[Hatchy]

When most people hear “crypto,” Bitcoin is usually the first thing that comes to mind. It’s the oldest, the most recognized, and for many people, the symbol of the entire industry.

It's not correct.

I get where you are coming from. But if we take a look from op's point of view it's actually correct. Even if we try to reference back to the origin of cryptography, nothing realistic was created, just so many theory that were not widely known by many. Bitcoin became the first that threw Cryptography to the world and made everyone know that something like that existed and could be used in our everyday life. If you mention crypto in the public today, people mostly recognise bitcoin. It has become the face of cryptocurrency all over the world.

Even though Bitcoin dominates attention, stablecoins seem to dominate actual day-to-day usage in many parts of the world.

You can try educate them about risk of stable coins but they can do whatever they like.

People also are aware of stable coins and a large number of crypto users have their money stored in stable currencies. Only a few knowledge about the negativity behind it.

[Danica22]

When most people hear “crypto,” Bitcoin is usually the first thing that comes to mind. It’s the oldest, the most recognized, and for many people, the symbol of the entire industry.

It's not correct.

Bitcoin is not the first, the oldest cryptocurrency.

I think that is true. Although Bitcoin was not the first cryptocurrency, it was the first successful one and laid the foundation for the cryptocurrency industry today.

Even though Bitcoin dominates attention, stablecoins seem to dominate actual day-to-day usage in many parts of the world.

You can try educate them about risk of stable coins but they can do whatever they like.

Stable coins are risky and such coins can be frozen even in your non custodial wallets. With stablecoins, non custodial wallets are not enough to secure your fund.
Most Stablecoins Can Be Frozen, Even in Your Own Wallets.

Yes, stablecoins are riskier. But when it comes to everyday payment methods, what people look for is a currency that is stable in value, easy to use, and widely accepted.

Like fiat, it also has its drawbacks and is incomparable to bitcoin. But I believe even you are using fiat to pay your daily bills instead of bitcoin.

[ZaryBee]

‎I don't think there's any reason to compare Bitcoin to stablecoin or think one will over shadow the other from my own point of view, because they function differently with no competition and serve different purposes.

‎Most Bitcoin holders are also stablecoin users. Bitcoin is for growth with a higher risk factor but higher profit, basically for long term usage. This means instead of an individual saving for a long term goal (future purposes) in a stablecoin with no growth,  it's profitable or smart to invest in Bitcoin. ‎Which means within those years, you have a higher chance of more profit, let's call it reward.

While stablecoins are for short term savings, trading and transition purposes, they're best for short term usage. ‎Where I see comparison is between stablecoins and traditional banking, which stablecoins are taking over due to inflation and others disadvantages. The value rate is lower, and the majority of the people are diverting from saving in traditional to stablecoin.

Bitcoin and stablecoins are used for different purposes, so I dont really see them as competitors. People usually hold bitcoin for long term growth, while stablecoins are more useful for trading, transfers and short term storage of value. I use both for different reasons, btc for holding and stablecoins for convenience.

So even if stablecoins become more popular, I dont think they will replace bitcoins role.

[Jostern]

I believe there is quite some difference between bitcoin and stablecoins, but there is also going to be a stability issue concerning bitcoin, but for majority of people using bitcoin are only doing that because of investment in bitcoin, but bitcoin doesn’t create a stability values that stable coins would give people, which is why people that are mostly interested in saving there money.

However if you’re an investor that want to invest and make some long term investment then you will have to choose investing in bitcoin that is where you have a chance of making some profit, likewise you don’t make any profit with Stablecoins.

[Minor Miner]

‎Where I see comparison is between stablecoins and traditional banking, which stablecoins are taking over due to inflation and others disadvantages. The value rate is lower, and the majority of the people are diverting from saving in traditional to stablecoin.

Stablecoins do not protect you from inflation because their value is pegged to fiat. As long as fiat continue to depreciate, stablecoin will depreciate as well. There is no significant difference between them.

In essence, the competition between stablecoin and traditional bank is a competition between two centralized entities. One side represents the new generation of finance, while the other represents the old system. But both are centralized, so switching from a bank account to a stablecoin will not get you out of the government's system.

[Ishicryptic]

I think that we are too eager to compare Bitcoin with other currencies and assets like gold and silver, fiat and the banking system now stablecoins, Bitcoin is unique and I don't think that comparison is necessary or speculating that Bitcoin will make one obsolete or the other will make it to become irrelevant. By all means all of them can function optimally in their markets, what happens is that it gives users more options to either hold one or more at any point in time, technological advancements are giving us more choices.

The major difference Bitcoin Bitcoin and stablecoins is that Bitcoin is volatile while stablecoins are not so what I do is that I hold Bitcoin my basically as a long term asset while my USDT stablecoin is for short term expenses, I cannot hodl stablecoins because it is not like Bitcoin that can give me profit.

[Z-tight]

Stablecoins give people the feel of using fiat, but in electronic form, so they would surely prefer it for active usage. Even merchants would choose to accept stablecoins over BTC, because it is 'stable' and they don't have to worry about volatility.

However, as much as BTC cannot offer 'stability', it offers much more that stablecoins cannot. So in simple terms, the two currencies offer their users different things, so it's hard to compare them both. But i would not hold stablecoins for a lot of obvious reasons: it can be confiscated, even in your own wallet and there is also the risk some of these coins could be backed by thin air.

[o48o]

Why would they overshadow anything, when they are competely different things? I mean could money overshadow bitcoin just because it's tokenized? They can't even overshadow the layer one they are build on.

And why would it matter if there are more transactions in some other chain then bitcoin, as they aren't competition against bitcoin. Bitcoin is permissionless, and while rest of them might say they are, they are not even in same league. It's like wondering if cars could overshadows bitcoin, when more people are using them.

[d5000]

The question for me is always: Why use a stablecoin if you could also use a Paypal-style service?

Stablecoins look more transparent, but in reality I think the main difference is regulatory in nature. Paypal-style "currencies" aren't available in all countries, while a blockchain currency can't be really denied to somebody only because they come from a certain geographic region.

Thus they are offering at least a bit of the censorship resistance Bitcoin offers. Even if they can be censored (via blacklists) censorship attempts have to be published in a smart contract code on-chain and thus are transparent. In contrast, in bank accounts or PayPal-style currencies everything is managed internally and you have no idea until you get hit by a freeze or account closure.

I think also the risk is smaller to be censored by a stablecoin company because it is more costly to add lots of addresses to blacklists, and so they really will only censor cases where an authority has demanded action, but never "because of suspicious usage" (that kind of censorship, however, still can be done by CEXes).

But stablecoins can't provide one of the main features of Bitcoin: to decouple value from inflation.

Thus, I'm sure that if Bitcoin adoption continues and volatility in consequence continues to fall, we will see a reduction of stablecoin usage eventually, because Bitcoin already offers the stability people need for a "payment currency".

BTW: nice answer @BlackHatCoiner. That aspect to "popularize blockchain concepts without volatility" is often overlooked I think.