JPMorgan: Stablecoin Usage Growth May Not Drive Market Cap Expansion in Tandem

Odaily Planet Daily News JPMorgan analysts point out that despite the rapid growth in stablecoin transaction volumes, their total market size may not expand correspondingly, with the key reason being an increase in "velocity."

The report states that as stablecoin applications in payment scenarios strengthen, the same unit of capital is used more frequently, thereby enhancing overall efficiency and also limiting the demand for new stablecoin supply.

The bank maintains a relatively cautious outlook, forecasting that the total market capitalization of stablecoins will be approximately $500 billion to $600 billion by 2028, deeming the market expectation of a "trillion-dollar scale" as overly optimistic.