The stablecoin market is projected to grow steadily to $500 billion by 2028, much lower than previous optimistic forecasts.
Most of the current demand for stablecoins comes from within the cryptocurrency ecosystem, especially in trading and DeFi, while the use as a means of payment remains very low.
MAIN CONTENT
88% of stablecoin demand comes from activities within the cryptocurrency ecosystem.
Stablecoin is not yet sufficiently capable of replacing traditional banks or payment wallets.
The legal framework in the United States may be a driving factor for stable growth in the future.
How are stablecoins currently used in the cryptocurrency market?
JPMorgan, through the research of strategist Nikolaos Panigirtzoglou, shows that more than 88% of stablecoin demand originates from internal activities in the cryptocurrency sector such as trading, DeFi (Decentralized Finance), and reserves of cryptocurrency companies.
In contrast, payments via stablecoins account for only 6% of total usage, indicating that stablecoins primarily serve investors and organizations in the cryptocurrency ecosystem rather than average users.
Can stablecoins replace banks or e-wallet applications?
JPMorgan believes stablecoins are not yet strong enough to replace traditional banking forms or payment wallets like Alipay and WeChat Pay, due to low yields and the many obstacles in converting between fiat currency and cryptocurrency.
This bank also points out that e-wallets and China's digital yuan (e-CNY) are centralized systems, making them difficult to use as a reference model for stablecoins in the global decentralized market.
"We find the forecast of scaling stablecoins from the current $250 billion to $1 trillion-$2 trillion in the coming years to be overly optimistic."
Nikolaos Panigirtzoglou, JPMorgan Strategist, 2024
Who holds a different view than JPMorgan about the future of stablecoins?
Not the entire industry agrees with JPMorgan's cautious view. A report from another major financial organization suggests that U.S. law, particularly the upcoming Genius Act, could significantly strengthen the position of stablecoins.
This report predicts that the size of stablecoins could grow tenfold, reaching $2 trillion by 2028 thanks to new legal clarity, helping the market to grow more robustly.
"U.S. law will legalize the stablecoin industry, facilitating rapid and sustainable growth."
Standard Chartered analysis team, 2024
What are the current limitations of stablecoin development?
Stable growth is occurring but does not exceed the expectations of many in the industry. The main activity of stablecoins is still primarily within the cryptocurrency community and has not really spread widely to the payment or traditional finance sectors.
Any changes from future legal regulations will be very noteworthy to assess the extent of market transformation. As JPMorgan points out, a slow and steady development process will be more sustainable than overly optimistic predictions.
Frequently Asked Questions
What is stablecoin most commonly used for?
Most are used for trading, DeFi, and reserves of cryptocurrency companies, accounting for up to 88% of the demand.
Can stablecoins replace traditional banks?
Not currently, due to low yields and difficulties in converting between fiat currency and cryptocurrency.
How does U.S. law affect stablecoins?
New laws are expected to bring legal clarity, creating a market growth incentive of more than 10 times.
What percentage of payments are made through stablecoins?
Only about 6%, the rest is used internally within the cryptocurrency ecosystem.
Is JPMorgan's analysis accurate?
Based on data and real-world observations, JPMorgan believes the market will grow steadily, not explosively.
Source: https://tintucbitcoin.com/stablecoin-tang-truong-cham-von-hoa-500-ty-usd/
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