The Stablecoin sector of $ 270 billion has grown significantly, but still represents less than 8% of Crypto’s total market limit, a level it has had since 2020, according to a JPMorgan research note.
This dynamic could turn the next wave of the United States that Stablecoin is launched into a zero sum contest, unless the cryptography market itself expands significantly, analysts led by Nikolaos Panigirtzoglou wrote.
Tether, whose USDT is mainly used abroad, plans to debut a token that meets the United States, Usat. Unlike USDT, whose reservations meet the USAT requirements, the support of USAT would completely meet the new regulatory standards, the bank said.
The stable are cryptocurrencies whose value is linked to another asset, such as the US dollar or gold. They play an important role in cryptocurrency markets, providing a payment infrastructure, and are also used to transfer money internationally. Tether’s USDT is the largest stablcoin, followed by Circle’s (CRCL) USDC
The approval of the US legislation.
While new players are committing the position before regulatory implementation, Stablecoin market growth is still linked to Crypto’s general market capitalization, analysts wrote.
Circle is also losing ground to competitors such as Hyperliquid, whose exchange only represents 7.5% of the use of USDC, as well as Fintech Giants Paypal (PyPL)Robinhood (HOOD)And Revolut, who are deploying their own tokens, JPMorgan said.
In response, Circle is developing ARC, a block chain adapted to USDC transactions, to improve speed, safety and interoperability and maintain central USDC for cryptographic infrastructure.
Without a significant expansion, the new wave of Stablecoin competition can simply redistribute the market share instead of growing the cake, added the report.
The USDC supply has increased to $ 72.5 billion, 25% ahead of 2025 estimates of the Wall Street Bernstein firm, said the corridor in a report earlier this month.
Read more: The Circle ‘USDC market share’ in a tear, ‘says Wall Street Bernstein corridor
