Visa has created a new analytics dashboard dedicated to providing data on stablecoins and their impact on the growing digital payments market.
Visa’s new onchain analytics platform is designed to provide deeper insight into usage trends for stablecoins, which are blockchain-based digital currencies mostly pegged to the value of fiat currencies such as the U.S. dollar and euro.
Through this new platform, which was developed in collaboration with Allium Labs, Visa is highlighting the impressive growth and constant evolution that these digital currencies have experienced in the market in just 6 years. In addition, it considers it essential to provide as much stablecoin data as possible, in an accurate and transparent way, to facilitate the visualization and understanding of the potential of this crypto sector.
Stablecoins catch up with existing payment networks
Stablecoins burst onto the market around 2016. However, despite their short lifespan compared to traditional payment systems, they have managed to catch up with established settlement networks, surpassing Paypal and almost reaching parity with Visa.
Even according to on-chain data, the annual trading volume of stablecoins has far surpassed the remittance market, which moves around $1 trillion in transactions per year.
Source: Visa
Today, the market capitalization of stablecoins exceeds $150.000 billion, demonstrating the enormous growth these assets have experienced in a short period of time.
Other data that expose the growing adoption and popularity of stablecoins are the number of active users and the total volume of operations that move with these crypto assets in all blockchains. According to the data published by Visa, stablecoins have around 27,5 million monthly active users and move up to $265.000 billion a month in operations on blockchains.
What are stablecoins?
Visa’s new analytics dashboard focuses primarily on stablecoins based on decentralized public networks that are backed by fiat currencies.
As an introduction to the panel, the company points out that stablecoins are tokens or digital assets issued on a blockchain, which are designed to maintain a stable value associated with a fiat currency and that, to achieve this, stablecoins maintain fiduciary reserves off-chain.
However, in the vast world of blockchain, there are other types of stablecoins, such as those that are backed by cryptocurrencies or other assets such as gold, and those that are not collateralized, also known as algorithmic stablecoins.
Visa stressed that its new data panel is accessible to anyone interested in the blockchain ecosystem and who wants to learn more about the movement of these digital currencies worldwide.
Continue reading: Ethereum, Avalanche, Polygon or Stellar: Which is the best blockchain for tokenization?
