Do you think if BTC had a stable price which could only be altered by $0.01-0.10 it would still be as popular and as used?
I dont think so. Having a non-stable price of bitcoin makes it popular. Because there are chances that its price will pump very high but also dump after all. But who cares it will be back again to its price sooner. The best thing about here is that it has no fixed price, it is not limited.
That's because much of the market is driven by speculation in the current state. But once Bitcoin achieves mass adoption, stability will be much more important, especially for merchants.