Visa's New Method Slashes Stablecoin Transactions by 90% to Combat Inflation
Visa, in collaboration with Allium Labs, has introduced a new method to filter out 'inorganic' activity and artificial inflation in stablecoin transactions. This move aims to remove illegitimate activities and provide a clearer picture of the stablecoin market.
The new methodology has significantly reduced the volume of stablecoin transactions by around 90% and the number of transactions by about 80%. Visa's goal is to eliminate 'potential disruptions' caused by large stablecoin transfers and 'inorganic users'.
According to Visa's charts, USDC has consistently handled more transactions than USDT (Tether) in most months since December 2023, indicating a higher volume and activity. However, USDT maintains a significant share of active addresses, around 75 to 80 percent.
Tron leads in active addresses, with 40 to 50 percent, while Ethereum accounts for more than 20 percent. USDC's share of all stablecoin transactions fluctuates between 50 and 60 percent.
Visa is actively promoting the use of stablecoins for international transactions to enhance liquidity and efficiency. While Solana leads in the number of transactions with 125 million in the last 30 days, Ethereum, along with its rollups and sidechains, handles around 40 to 50 million transactions, similar to Tron and the Binance Smart Chain. The volume of transactions on Solana and the Binance Smart Chain primarily consists of small transactions, unlike Ethereum and Tron, which see more larger transactions.
Visa's new methodology provides a more accurate representation of the stablecoin market by removing illegitimate activities. USDC leads in transaction volume, while USDT maintains a strong presence in active addresses. Visa continues to support the growth of stablecoins for international transactions, with Solana and Ethereum playing significant roles in the stablecoin ecosystem.
