Opinion by: Maksym Sakharov, Co-Founder and Group CEO of Wefi
Current markets are experiencing tailwinds as a result of tariffs imposed by the US administration and retaliation measures from trading partners. So far, however, market advocates say Trump’s tariffs are a major approach to negotiations, and that its impact on businesses and consumers will remain manageable.
Market uncertainty drives institutional interest
Adding to uncertainty is inflationary pressures that can challenge the US Federal Reserve rate cutting outlook. In addition, an upcoming fiscal debate in Washington on the federal budget also brings jitters to the market.
Resolving a debt ceiling remains a touch issue, as Treasury is currently relying on “extraordinary steps” to meet US financial obligations. The exact timeline for when these steps are exhausted is unclear, but analysts expect them to run out after the first quarter.
As the administration suggested removing the ceiling of the debt, it could face the resistance from the fiscal conservatives in Congress. According to a recent report, a sector experiencing stable growth is stablecoins despite the uncertainty of this macroeconomic. Most of the quantity is driven by Tether’s USDT flows (USDT) and USDC (USDC).
The dollar pegged stablecoins dominated the market
Stablecoins began as an experiment – a programmable digital currency that would make it easier for users to enter the crypto market and exchange various digital assets. A decade later, they were a critical part of the wider digital financial infrastructure.
The Stablecoin Market Cap is currently standing on a record of $ 226 billion and continues to expand. Demand in emerging markets drives this growth. A recent Ark Invest report states that dollar-pegged stablecoins dominate the market. They cost more than 98% of Stablecoin supply, with gold- and euro supported that only shares a small part of the market.
In addition to this, USDT costs more than 60% of the total market. Ark’s research suggests that the market will expand and include Asian -supported stablecoins.
Recently: US will use Stablecoins to ensure dollar hegemony – Scott Bestent
In addition, digital possessions go through a shift marked by “stablecoinization” and “dollarization.” Asian countries such as China and Japan have been offloading US Treasurys record values. Saudi Arabia has completed Petrodollar’s 45-year agreement, and the BRICS countries have further exceeded the Swift network to reduce reliance on the US dollar.
Bitcoin (Btc) and ether (Eth) is traditionally the main entry points in the digital asset ecosystem. Stablecoins have, however, the leader in the last two years, now represent 35% -50% of Onchain transaction volumes.
Despite the global headwinds of regulation, emerging markets have strengthened stablecoins. In Brazil, 90% of crypto transactions are carried out by stablecoins, which are primarily used for international purchases.
A visa report ranked Nigeria, India, Indonesia, Turkey and Brazil as the most active Stablecoin market, and Argentina ranked second in Stablecoin Holdings. In addition, six out of every 10 purchases in the country are made using stablecoins that are dollars, with close consistency between the USDC and USDT.
This change to Stablecoins in Argentina is driven by high inflation and the need to protect against the lowering of the Argentine peso. People in countries with unstable money return to Stablecoins, such as the USDT, to protect their wealth.
Deobanks and their role in areas at high risk
Stablecoins have prepared the way for a new generation of financial services. For example, Stablecoins provided the foundation for decentralized onchain banks, or deobanks, who embraced the stablecoins as their native currency.
Deobanks produce digital banking and financial services that can be accessible to everyone, even those who do not meet the strict account opening criteria. They also attract people who do not trust traditional institutions in their money. Users maintain complete control of their funds through non-custodial accounts and enjoy real-time transaction transaction.
The decentralized nature of the Deobanks replaces mediators with smart contracts that connect personal wallets directly to digital bank accounts. This method cuts costs and speeds up transactions. Onchain data clearly maintains every detail of the transaction. The result is a financial model that is both good and companion.
What is ahead of
Analysts predict Stablecoin’s cap cap will exceed $ 400 billion in 2025. Deobanks bring a new edge to this growth, using stablecoins to drive economic growth and expand digital payment networks. They open fresh methods for cross-border commerce and new opportunities for financial integration.
Over the next few years, the combined increase of stablecoins and next -generation onchain banks will change how the money is moving on the boundaries and transactions are processed. Blockchain integration with the back end and Stablecoin Foundation is Promote lower fees, faster payments and more accessible financial services. The trend represents a move away from the outdated systems and signs of a more resilient financial ecosystem.
Opinion by: Maksym Sakharov, co-founder and CEO of the WEFI team.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
