I think no, people are hooked up into crypto because the volatiliy of the coins is so agile. A stable coin adoption could be possible but i think not so many people will use it as a daily transaction method due to already many digital wallet that already there nowdays. So i think the unique things about crypto that hooked many people are their price are volatile and people are loving it.
They want to make fast money from the volatility and they will try to search for profitable coins because they know that the stable coins can not give them the profit.
Stable coins help them reduce the losses that can happen anytime, so when they see the price is down, they will convert the coin to stable coins.
Maybe people can also use stable coins as the payment system because the price will not have too volatile compare to bitcoin and altcoins.
The volatility of the bitcoin and altcoin tempt them to make money and convert it into stable coins to save their money.
No, when they see the price is down they do NOT convert to stable coins. They convert to stable coins when they see the price is high and could drop. If you think the price is low you want to get out of stable coins in order to reap the benefits from any increases in coins like Ethereum or Bitcoin.