Visa and Allium Labs Partner for a Stablecoin Analytics Dashboard
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Visa has announced a partnership deal with Allium Labs to create an analytics dashboard focused on stablecoin activity.
The stablecoin market has been rife with activity, with the competition between the two largest stablecoins, Tether (USDT) and Circle’s USD Coin (USDC) increasing. Visa is now looking to leverage the growth of this market through an analytics platform.
VISA Launches Stablecoin On-Chain Analysis Dashboard
VISA debuts On-Chain Analysis Dashboard, collating stablecoin market data. Developed with Allium Labs, it tracks $USDC, $USDT, $PYUSD, and $USDP.
Accessible to all, aiding insights into fiat-pegged stablecoins. Bullish ⚡️ pic.twitter.com/T1NjOu96EQ
— Zia ul Haque (@ImZiaulHaque) April 26, 2024
The stablecoin analytics platform launched by Visa in partnership with Allium Labs seeks to reflect upon the status of the stablecoin market.
Visa Partners with Allium Labs for a Dashboard on Stablecoin Activity
This dashboard will focus on the growth of the stablecoin market, but it will not focus on the potential distortions that might come from inorganic activity and other inflationary practices deemed to be artificial.
The data available on this platform shows that Circle’s USDC is securing a significant share of the stablecoin market. This stablecoin has been growing in terms of market share since the beginning of the year.
According to the data provided by Circle, USDC reported $456 billion worth of transaction volumes last week, which is significantly higher compared to the $89 billion in volumes reported for USDT.
Visa’s analytic dashboard also shows that USDC accounted for half of the total stablecoin transactions since the start of the year. Visa has been working with Circle since 2020, with the stablecoin enjoying a significant increase in partnerships. Visa did not mention the reason behind the increase in transaction activity.
Superiority over Tether
These findings come at a time when Tether is ranked as the leading stablecoin in terms of market capitalization. Tether’s market cap stands at $110 billion, while USDC’s market cap is at $33 billion according to data from CoinGecko.
Some analysts have said that these findings could prove that Tether is more held outside the US as a store of value. On the other hand, USDC is more popular in the US as a currency for transactions.
Stablecoins are cryptocurrencies whose value is pegged to an underlying asset such as the US dollar. For instance, the value of 1 USDC is pegged at $1. Because of their “stable” value, stablecoins are used by traders to trade other tokens. They can also be used as a means of payment in cross-border transactions.
Circle’s growing dominance in the US has seen the stablecoin being affected by activities in the traditional US financial industry. For instance, the total USDC in circulation dropped by more than half in December last year after Circle revealed exposure to the collapsed Silicon Valley Bank.
