The stablecoin sector of $ 270 billion has grown significantly, but still accounts for less than 8% of Crypto’s total market capital, a level it has had since 2020, according to a JPMorgan research note.
This dynamic could turn the upcoming wave of us stableecoin launched to a zero-SUM competition, unless the crypto market itself is expanded significantly, analysts wrote by Nikolao’s Panigirtzoglou wrote.
Tether, if USDT is primarily used abroad, plans to debut an American-compatible token, USAT. Unlike USDT, if reserves are about 80% in accordance with US requirements, USAT’s support would fully meet the new regulatory standards, the bank said.
Stableecoins are cryptocurrencies whose value is bound to another asset, such as the US dollar or gold. They play an important role in cryptocurrency markets, provide a payment infrastructure and are also used to transfer money internationally. Tether’s USDT is the largest stableecoin, followed by Circle’s (CRCL) USDC.
The transition to US stablecoin legislation in July has already spurred a fresh round of launches aimed at Circle’s USDC, which dominates the US market, noted the report.
While new players jockeys for position prior to legislative implementation, the stableecoin market remains growth tied to Crypto’s total market hood, analysts wrote.
Circle also loses reason for competitors like Hyperliquid, whose exchange alone accounts for almost 7.5% of USDC use, as well as fintech giants Paypal (PYPL)Robinhood (HOOD)And revolutly that rolls out their own symbols, Jpmorgan said.
In response, Circle ARC, a blockchain tailored to USDC transactions, develops to improve speed, security and interoperability and keep USDC centrally for cryptoinfrastructure.
Without significant expansion, the new wave of stableecoin competition can simply redistribute the market share instead of growing the cake, the report added.
USDC Supply has risen to $ 72.5 billion, 25% ahead of Wall Street company Bernstein’s estimates 2025, the broker said in a report earlier this month.
Read more: Circle’s USDC market share ‘on a tear,’ says Wall Street -Broker Bernstein
