JPMorgan Maintains Growth Forecast for Stablecoin Market but Skeptical About Reaching $1 Trillion Scale

On December 18, JPMorgan analysts reiterated their view that they do not expect the stablecoin market to reach a $1 trillion scale in the coming years. They argue that growth is likely to be closely linked to the overall cryptocurrency market, and significant acceleration beyond that is not anticipated.

The bank's analyst team pointed out that the stablecoin market has expanded by about $100 billion this year, surpassing $300 billion. Growth has been concentrated in the two largest tokens, with Tether's USDT increasing by approximately $48 billion and Circle's USDC by about $34 billion, accounting for the majority of the overall growth.

The analysts maintain that the growth of stablecoins is still...