Deep Tide TechFlow News, on July 3rd, according to CoinDesk, JPMorgan predicted in its latest research report that the stablecoin market will grow to $500 billion by 2028, far below other institutions' optimistic estimates of $1 trillion to $2 trillion.

The report pointed out that currently about 88% of stablecoin demand comes from original cryptocurrency activities, including trading, decentralized finance collateral, and idle funds held by crypto companies, while payment usage accounts for only 6%.

JPMorgan analysts believe that even under optimistic assumptions, the growth of stablecoins in the payment sector will only slightly increase the overall market size. The bank also dismissed the possibility that stablecoins could massively replace traditional bank deposits or money market funds, arguing that stablecoins lack yields and there is friction in converting between fiat and cryptocurrencies.