> nobody is using it for payments at all, rather just holding crypto coins and hoping they'll go up

The above statement is false.

I prefer to use cash and crypto to prevent my expenses from being tracked (although I absolutely am not avoiding any taxes). I pay cash, not crypto when I want weed (sadly it's still illegal in most of the places). I rarely hold more than $100 worth so don't care about where is the rate going. I presume I'm not unique.