JPMorgan analysts said the Stablecoin Market was pulled out by this year’s wider crypto ecosystem, which was a part of the passage of the US Genius Act.
In nearly $ 300 billion, the market grew 42% year-to-date, almost twice 21% crypto growth in general, according to a report published Tuesday.
The report records that Stablecoins now make up about 7.5% of the $ 3.8 trillion total crypto market cap and approximately 1.3% of the US M2 currency supply, up to 35 points basis since the beginning of the year.
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, giving other things a payment infrastructure, and are also used to transfer money around the world.
Because the Signed the Genius Act On July 18, the Stablecoin Market Cap rose 19%, emphasizing how regulation accelerated adoption, according to the bank.
The largest beneficiary appears to be Circle’s (CRCL) USDC. JPMorgan analysts noted that after the resistance earlier in the year, its market cap advanced to the third quarter, rising from $ 61.5 billion by the end of June to $ 73.7 billion in late September, giving it a 25.5% part of the Stablecoin market, up to 400 points to 2025.
Meanwhile, Tether saw its dominance of the backdrop, coming down from 67.5% at the beginning of the year to 60.4%, the bank said. Ethena’s synthetic stablecoin USDE also captures the soil, which grows to $ 14.4 billion in circulation and securing 5% part.
For years, the USDT and USDC have identified a duopoly in the Stablecoin dollar market, but that balance is moving. JPMorgan said the USDC continues to eat at Tether’s lead, which now regulates nearly 30% of the combined part of the two coins, from 24% at the beginning of the year.
The Genius Act can be tilting momentum into the circle, the analysts said, even a more fragment market can benefit platforms such as bullish (BLSH) that provide liquidity services for a growing roster of stablecoin providers.
Bullish owns CoinDesk.
Read more: US Stablecoin battle can be zero-sum game: JPMorgan
