JP Morgan says the rise in cryptocurrencies/Bitcoin so far this year has been a major boost to growth in stablecoins:
- In contrast to last year when market participants were still reeling from the collapse of several prominent crypto entities, the regional banking crisis, and of course the Fed’s tightening campaign, the stablecoin market is growing again.
JPMorgan cited industry sources as saying the stablecoin market size is around $160 billion today.
- Up 30% from local low in late 2023
- Just below the peak of $180 billion in early 2022.
Tether remains the main player, accounting for nearly 75% of this market.
- Over $110 Billion in Coins in Circulation (Record)
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A stablecoin is a type of cryptocurrency designed to maintain a relatively stable value of a reference asset, usually a fiat currency such as the US dollar or a commodity such as gold:
- It can provide stability in fiat currency prices.
- While retaining the advantages of cryptocurrencies, such as fast transaction speeds and low fees.
- It is widely used in trading, lending, and as a medium of exchange in decentralized finance (DeFi) applications.
