JPMorgan -Analysts said the stableecoin market has drawn in front of the wider crypto -ecosystem this year, partly driven by the passage of the US genius law.
At almost $ 300 billion, the market has grown 42% years to date, almost twice as much as the 21% crypto growth, according to a report published on Tuesday.
The report notes that stablecoins now make up approx. 7.5% of the total crypto market capital of $ 3.8 trillion and approx. 1.3% of the US M2 money amount, up 35 basic points since the start of the year.
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 that provide a payment infrastructure and are also used to transfer money internationally.
Since the Genius Act was signed on July 18, the StableCOin market capsule has increased 19%, which emphasized how regulation has accelerated the adoption, according to the bank.
The largest receiver appears to be Circle’s (CRCL) USDC. JPMorgan -analysts noted that after stagnating earlier this year its market capital has risen in the third quarter and rose from $ 61.5 billion at the end of June to $ 73.7 billion in late September, giving it a 25.5% share of the stableecoin market, up to approx. 400 Basic Points in 2025.
Tether has meanwhile seen his dominance shrink and fall from 67.5% at the beginning of the year to 60.4%, the bank said. Ethena’s synthetic stableecoin USDE has also gained space, grown to $ 14.4 billion in circulation and securing a 5% share.
For years, USDT and USDC have defined a duopoly on the dollar stableecoin market, but this balance is changing. JPMorgan said that USDC is supporting steadily in Tether’s lead, now nearly 30% of the two coins are committing to combined share, up from 24% at the beginning of the year.
Genius Act can be the slope of momentum further against circle, the analysts said, although a more fragmented market could eventually benefit platforms such as Bullish (BLSH) that provides liquidity services to a growing list of stableecoin issuers.
Bullish is the owner of Coindesk.
Read more: The US StableCOin match could be zero-SUM games: JPMorgan
