According to Cointelegraph, the global stablecoin supply is anticipated to surge to $1 trillion by the end of 2025, potentially serving as a significant catalyst for the broader cryptocurrency market. CoinFund managing partner David Pakman expressed optimism about the stablecoin adoption upswell during Cointelegraph’s Chainreaction live show on X on March 27. Pakman highlighted the potential increase from $225 billion to $1 trillion within the calendar year, marking a substantial shift for blockchain-based finance despite its modest scale compared to global financial markets.
Pakman further suggested that the rise in capital flowing onchain, coupled with growing interest in exchange-traded funds (ETFs), could bolster decentralized finance (DeFi) activity. He noted that if ETFs are permitted to offer staking rewards or yield to holders, it could unlock significant growth in DeFi activity. This perspective aligns with the current stablecoin supply, which reached an all-time high of over $208 billion across the five largest stablecoins on March 28, according to Glassnode data. Pakman emphasized the importance of this movement, stating it represents a major catalyst for onchain wealth transfer that has been absent for over a decade.
The stablecoin market continues to expand, recently surpassing $219 billion, indicating that the market is likely still mid-cycle rather than at the peak of a bull run, as suggested by IntoTheBlock analysts. The adoption of stablecoins for daily payments is increasing, showcasing the effectiveness of blockchain-based transactions. Pakman noted a 22-fold increase in stablecoin volume since 2021, with a significant decrease in the size of each transaction, suggesting their use for payments rather than large transfers. This trend is consistent with comments from CryptoQuant founder and CEO Ki Young Ju, who observed that stablecoins are increasingly utilized for remittance payments and as a store of value. However, Ju cautioned that stablecoin supply alone may not drive Bitcoin’s price without additional catalysts.
