Dead internet theory? 90% of all stablecoin transactions done by machines

While crypto is once again looking up (I noticed Solana hit $150 again yesterday), a report first published by Bloomberg is stirring the minds of crypto fans on social media.

The ‘Dead Internet Theory’ is suddenly alive and well again as it turns out that no less than 90% of all stablecoin transactions are made by bots and automatic orders.

Imperva

Just as major financial services companies such as PayPal and Stripe are exploring the possibility of launching their own stablecoin, the use of these cryptocurrencies is already well established for all those who are crypto-inclined. However, according to a report discussed yesterday on Bloomberg, as much as 90% of all stablecoin transactions are not ‘organic’ (aka not done by human input).

This means that the vast majority of these transactions are done by bots and automatic orders.

no surprise that programmatic money is used in novel programmatic ways

humans program the bots for these new use cases fwiw

the claim was never that stablecoins are only used for global payments and remittances

get ready for a lot more “machine managed money” pic.twitter.com/5xZaNgjE8f

— Mike Dudas (@mdudas) May 6, 2024

This also means that the ‘Dead Internet Theory’ is now entering the crypto world. Originally launched in 2016 or 2017, this conspiracy theory states that only 10% of the internet is “organic” and the vast majority of all social media users are bots.

The theory gained ground after a report from the American company Imperva. They reported that 2016 was the first year in which internet traffic made by bots exceeded human activity for the first time (52% versus 48%).

According to the theory, the bots try to trick the algorithms into redirecting their preferred pages to a better position on search engines.

Stablecoins on the rise once again.

Capital is entering the system.

Higher. pic.twitter.com/xO05LNQ1eN

— 10Δ (@10delta) May 5, 2024

Another stablecoins theory is also gaining ground. One that says that the number of transactions by Wall Street companies increases as the number of stablecoins in circulation increases as well.

An interesting piece of data.