Visa Launches Dashboard for Stablecoin Analysis

Stablecoins have been a hot topic in the world of finance, with their volume seemingly catching up to established settlement networks. But does this tell the full story? Visa doesn’t think so, and they’ve launched an analytics dashboard to shed light on the reality behind stablecoin transactions.

The Visa Onchain Analytics Dashboard, developed in partnership with Allium Labs, aims to provide clear insights into stablecoin activity by filtering out the noise and presenting easily digestible data. This initiative comes as Visa recognizes the need to interpret stablecoin data accurately, especially given the complexities involved in comparing it to traditional financial networks.

One of the main challenges in analyzing stablecoin transactions is the presence of bots performing various activities such as arbitrage, liquidity provision, and market making in decentralized finance (DeFi). While these activities are essential for the growth of the DeFi ecosystem, they don’t resemble traditional settlement transactions. Visa addresses this issue by applying filters to remove inorganic data, resulting in a more accurate representation of stablecoin transaction volumes.

According to Visa’s data, stablecoin supply is approaching all-time highs, with circulating supply nearing $150 billion. Moreover, there has been steady growth in the number of monthly active stablecoin users, reaching 27.5 million across all chains. However, when adjusting for bot activity, the total transfer volume for the last 30 days decreases significantly from $2.65 trillion to $265 billion.

It’s important to note that Visa’s analytics dashboard focuses solely on on-chain volume, overlooking the significant portion of crypto transactional activity that occurs on exchanges. While stablecoins like USDC are popular for settlement, the transactions within exchanges’ own books are not captured in the data. This discrepancy underscores the need for comprehensive analytics tools that consider all aspects of stablecoin usage.

Visa’s foray into stablecoin analytics reflects its commitment to understanding and leveraging emerging technologies in the financial landscape. As a company with decades of experience in digital payments, Visa recognizes the potential of stablecoins to revolutionize money movement. By providing accessible and transparent data through its analytics dashboard, Visa aims to empower stakeholders to make informed decisions in the evolving stablecoin ecosystem.

The launch of Visa’s analytics dashboard raises questions about the company’s future involvement in the crypto space. While some speculate about the possibility of Visa launching its own stablecoin, others envision a more nuanced role focused on providing infrastructure and services to support the growing adoption of stablecoins. Regardless of the direction Visa takes, its engagement with blockchain technology signals a significant shift in the traditional finance sector towards embracing innovation.