The $ 270 billion stablecoin sector has grown significantly but still has accounts of less than 8% of the total crypto market cap, a level held since 2020, according to a JPMorgan research note note.
That dynamic can turn on the upcoming US Stablecoin wave launches into a zero-sum contest, unless the crypto market itself expands significantly, the analysts led by Nikolaos Singingzoglou wrote.
Tether, whose USDT is primarily used overseas, plans to deebut a The token following the USUSAT. Unlike the USDT, whose reserves are about 80% complying with US requirements, USAT -backing will fully meet new regulatory standards, the bank said.
Stablecoins are cryptocurrencies that the value is tied to another owner, such as the US dollar or gold. They play a major role in cryptocurrency markets, which provides payment infrastructure, and are also used to transfer money worldwide. Tether’s USDT is the largest stablecoin, followed by Circle’s (CRCL) USDC.
The passage of The law of US stablecoin In July it was prompting a fresh circulation of launches that aimed at the USDC of the Circle, which dominated the US market, the report mentioned.
While new players are jockeying for the position leading to regulation implementation, the growth of the Stablecoin market remains tied to the general crypto cap, the analysts write.
The Circle also loses land on competitors such as Hyperliquid, whose exchange only costs about 7.5% of USDC use, as well as giant paypal fintech (PYPL)Robinhood (Hood)and Revolut, which releases their own tokens, JPMorgan said.
In response, the circle develops Arko.
Without significant expansion, the new Stablecoin competition wave may re -provide market sharing rather than growing the pie, the report added.
The USDC supply has risen to $ 72.5 billion, 25% leading Wall Street firm Bernstein 2025 estimates, the broker said in a report earlier this month.
Read more: The USDC Market shares ‘in a tear,’ says Wall Street broker Bernstein
