Over 70% of Stablecoin Transactions in Q3 Are Linked to Bots, Report Finds

A new report has shed light on the true nature of stablecoin activity, revealing that more than 70% of all stablecoin transactions in the third quarter of 2025 were tied to automated bots. This finding raises fresh questions about the authenticity of trading volumes in the digital asset sector and the role of algorithmic activity in shaping market dynamics.

The Rise of Automated Trading in Stablecoins

Stablecoins such as USDT, USDC, and DAI have long been marketed as essential tools for traders seeking dollar-pegged liquidity. However, the report highlights that much of this activity is being driven not by retail or institutional investors, but by trading bots designed to execute high-frequency strategies.

Analysts suggest that bots are increasingly used for arbitrage, liquidity farming, and market-making activities, especially in decentralized exchanges (DEXs) and cross-chain environments. This type of trading can artificially inflate transaction counts and give the impression of a more robust ecosystem than what truly exists.

A Double-Edged Sword

While bot-driven transactions raise concerns about “real” user adoption, they also serve a functional role in the market:

Arbitrage bots help balance prices across exchanges.

Liquidity bots support smooth trading by narrowing bid-ask spreads.

Farming bots maximize returns in DeFi protocols by moving stablecoins between pools.

Still, critics warn that the heavy presence of bots creates vulnerabilities. Market distortions, wash trading, and inflated metrics may erode investor confidence, especially among regulators monitoring the sector.

Implications for Transparency

The revelation could reignite debates about transparency in the crypto market. If the majority of stablecoin activity is non-human, industry players may need to rethink how they present transaction metrics to the public. Regulators, meanwhile, could use this data to push for stricter reporting standards and anti-manipulation safeguards.

The Bottom Line

Stablecoins remain a backbone of the digital economy, bridging the gap between traditional finance and crypto markets. Yet, with over two-thirds of transactions traced back to bots, it is clear that the stablecoin sector is far from a purely organic marketplace. Whether this reliance on automation proves to be a strength or a weakness will depend on how exchanges, regulators, and investors adapt to this new reality.