TLDR
- Stablecoin volumes reached record highs in Q3 2025, fueled by significant growth in token supply and trading activity.
- Bots accounted for 71% of all on-chain stablecoin transactions, marking a rise from 68% in Q2 2025.
- Retail usage of stablecoins hit an all-time high, with token transfers under $250 reaching new levels.
- Despite the growth, bot-driven activity has raised concerns about potential wash trading and market manipulation.
- Stablecoins’ role as an on- and off-ramp between crypto and traditional finance could be undermined by bot dominance.
Stablecoin activity in Q3 2025 has reached record highs, but human traders are not driving the surge. Instead, automated bots dominate the scene, accounting for over 70% of on-chain transactions involving stablecoins. This trend highlights the increasing role of automated protocols in the market, raising concerns about the stability and transparency of the ecosystem.
Bots Drive Stablecoin Transactions
Automated bots have taken a commanding role in the stablecoin sector. A new report from CEX.io reveals that bots accounted for 71% of all on-chain stablecoin transactions in Q3 2025. This marks a significant increase from 68% in the previous quarter. Bots have continued to grow steadily, outpacing human traders, especially as market activity cooled down in September.
The surge in bot-driven activity has raised questions about its impact on stablecoin markets. “The surge of bot activity and unlabeled high-frequency transfers could raise questions about wash trading,” the report states. The concern lies in the possibility that non-economically valuable transfers could affect the stablecoin landscape. Despite these concerns, the stablecoin market saw substantial growth, with trading volumes reaching a four-year high.
Retail Usage Soars Amid Bot-Driven Stablecoin Boom
While bot-driven activity has raised some red flags, bullish data points persist in the stablecoin market. Total token supply increased by approximately $43 billion during Q3 2025, driven by significant minting events. Retail usage also hit an all-time high, marking a considerable increase in token transfers under $250.
Despite the dominance of bots, the stablecoin market is experiencing record growth. This surge suggests that 2025 could surpass the entire volume of 2024 in transactions. The report further notes that this growth excludes bot-driven transactions, painting an even more optimistic picture of stablecoin adoption. However, bot activity continues to pose challenges in maintaining market integrity and confidence.
Stablecoins are designed to serve as a bridge between cryptocurrency and traditional finance (TradFi). However, the growing presence of bots in the ecosystem may undermine this utility. Automated activity could distort the role stablecoins play as a stable, reliable on- and off-ramp for traders.
Bots can cause irrational market behaviors that affect investor confidence. While bots may not directly contribute to wash trading, their continued dominance raises concerns among human traders.
