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JPMorgan Warns Stablecoin Growth Is Slowing, Predicts $500B Cap by 2028

Despite all the talk about stablecoins reshaping finance, JPMorgan is pumping the brakes. In a new report, the bank says the stablecoin market is likely to grow to $500 billion by 2028 - much lower than the $1 trillion to $2 trillion predictions being pushed by some others in the industry.

Here’s what we’re seeing: the hype around mass adoption doesn’t match what’s actually happening.

Read on for the details.

Most Stablecoin Demand Still Comes From Crypto Insiders

JPMorgan’s research, led by strategist Nikolaos Panigirtzoglou, takes a realistic view of how stablecoins are used today. According to the report, a massive 88% of demand comes from within the crypto ecosystem - things like trading, DeFi activity, and idle treasury funds held by crypto firms.

In contrast, payments only make up 6% of stablecoin use.

That’s a key reason the bank isn’t buying into the trillion-dollar forecasts.