Stablecoins in everyday crypto shopping: Insights from our research
In December 2024, the Crypto Valley Association Journal (CVA Journal) 2024 published our latest research on stablecoins and their role in cryptocurrency adoption for everyday commerce. You can download it here (page 40). This study, conducted by Cryptorefills Labs, provides empirical evidence on why stablecoins like Tether (USDT) and USD Coin (USDC) are becoming the preferred choice for crypto shoppers over volatile coins like Bitcoin (BTC) and Ethereum (ETH). In this post, I will summarise the key findings, provide additional perspectives and explain some of the charts that illustrate these trends.
Key findings from the study
Our research, based on Cryptorefills’ annual consumer survey and transaction records, found that nearly 80% of crypto shoppers prefer using stablecoins over volatile coins for payments. This aligns with the hypothesis that Bitcoin and Ethereum are increasingly seen as investment assets rather than practical means of exchange. Several factors explain this preference:
- Price stability: unlike BTC or ETH, whose values fluctuate, stablecoins maintain a fixed value, making them a predictable payment method.
- Lower transaction costs: when processed on Ethereum Layer 2 networks or alternative blockchains, stablecoin transactions tend to be faster and cheaper.
- Shopping convenience: consumers prefer pricing consistency. Stablecoins eliminate the complexity of fluctuating values in transactions.
- Tax considerations: in some jurisdictions, spending BTC or ETH triggers capital gains tax, whereas stablecoins often do not, making them a more efficient payment option.
Explaining the data: Consumer preference for stablecoins
One of the most striking findings from our research is that a significant majority, almost 80% of crypto consumers, prefer using stablecoins for payments rather than volatile coins. This is reflected in a chart illustrating the breakdown of crypto shoppers’ payment preferences.
Another key insight is that two-thirds of respondents indicated they would shop more frequently if their preferred merchants accepted stablecoins. This reinforces the argument that businesses should prioritise stablecoin payment integration if they wish to attract more crypto consumers.
Stablecoins and shopping frequency
Our study also examined whether stablecoin preference correlates with shopping frequency. The data shows a weak-to-moderate positive correlation between stablecoin preference and the number of transactions made. This means that consumers who prefer stablecoins tend to shop more often with crypto compared to those who use BTC or ETH.
A chart in the study visualizes this relationship, showing a slightly upward trend indicating that stablecoin users engage in more frequent crypto purchases. While the correlation is not overwhelmingly strong, it is statistically significant, supporting the idea that stablecoins could encourage repeat transactions and enhance customer loyalty.
The fragmentation of stablecoin payment networks
Another interesting takeaway from the study is how stablecoin transactions are distributed across different blockchain networks. Contrary to what some might assume, only 15% of stablecoin transactions occur on the Ethereum mainnet, with the majority processed through Layer 2 networks, sidechains, or alternative blockchains like Solana, Polygon, Binance Smart Chain, Tron and Avalanche.
A chart in the research illustrates this fragmentation, highlighting how stablecoin transactions are spread across various networks. This presents both an opportunity and a challenge for businesses: they must decide whether to support multiple blockchains or limit themselves to the most widely used ones. Supporting multiple networks could expand their reach but also increase operational complexity.
Future considerations: What’s next for stablecoins?
While stablecoins have already established themselves as a dominant force in crypto commerce, the landscape is still evolving. Some key trends to watch include:
- Emerging scalability solutions: networks like Base, SUI, Sonic and TON are gaining adoption, potentially driving further fragmentation.
- New stablecoins entering the market: PayPal USD and other corporate-backed stablecoins could impact consumer preferences.
- Regulation: MICAR and other regulations may shift the balance of currently dominating stablecoins (USDT, USDC).
- B2B stablecoin use cases: businesses may increasingly adopt stablecoins for cross-border payments, treasury management and automated smart contract settlements.
Final thoughts
Our research reinforces the importance of stablecoins in the crypto payment ecosystem. As our findings show, stablecoins provide a stable, efficient and practical solution for consumers and merchants alike. Businesses that have not yet integrated stablecoin payments risk missing out on a growing segment of crypto-savvy consumers who prefer stability over volatility.
The challenge moving forward is not just accepting stablecoins, but making them usable across every network a shopper might hold them on. The fragmentation of payment networks means that merchants and payment processors will need to strategically choose which blockchains to support based on their customer base.
As stablecoin payments keep growing, our focus at Cryptorefills Labs will be on tracking adoption trends, evaluating network scalability solutions, and providing data-driven insights to help businesses navigate this rapidly evolving landscape.
Stay tuned for more insights as we continue our research on the future of crypto payments.