In a groundbreaking analysis, investment center Bernstein heralded stablecoins as the long sought-after ‘killer app’ in the cryptocurrency world. He said that these altcoins are “ready to reshape the industry landscape with their superior functionality.” According to the firm’s forecasts, the stablecoin market is on track to reach a staggering $3 trillion over the next five years. Here are the details…
Bernstein analyst hopeful for these altcoins
Gautam Chhugani, a distinguished analyst at Bernstein, expressed great optimism about the future of stablecoins. “We expect major global financial and consumer platforms to collaborate on issuing co-branded stablecoins. “Looking ahead, we anticipate that tokenized stablecoins will lead to a staggering $2.8 trillion market,” he said. The driving force behind the phenomenal rise of stablecoins lies in their incredibly lucrative business models. Underscoring the importance of these models, Chhugani pointed to the significant revenues that companies issuing these stablecoins generate from their treasury and money market assets. This revenue stream is expected to gradually shift from offshore to onshore areas as the market becomes more regulated.
Currently, the circulating stablecoin supply is worth about $125 billion. Increasing its market cap by an impressive 26% this year, Tether has a 68% share of the stablecoin market with a total valuation of $84 billion. However, the balance is poised to shift as formidable competitors like PayPal enter the scene. Global payments giant PayPal has recently benefited from the Ethereum Blockchain, as we reported on Kriptokoin.com. It introduced its own stablecoin on the ETH network, PayPal USD (PYUSD). This strategic move places PayPal at the forefront of stablecoin innovation.
Projected $3 trillion market cap
Bernstein’s analysis sheds light on the transformative potential of stablecoins, which combine the efficiency and security of cryptocurrencies with the stability of traditional assets. As the cryptocurrency space matures and regulatory clarity emerges, the groundwork is being laid for stablecoins to revolutionize how value is transferred and stored across borders.
Combining the stability and predictability of traditional assets with the versatility of cryptocurrencies, stablecoins bridge the gap between the two worlds and provide a reliable medium of exchange for global transactions. The rapid expansion of the market with the entry of well-established players such as PayPal heralds a seismic change in the financial environment. The stablecoin market is running towards the projected $3 trillion milestone. Meanwhile, the cryptocurrency ecosystem is poised to witness an unprecedented era of growth and innovation.
What are the biggest stablecoins?
So, what are among these altcoins that Bernstein pointed out? If we look at the market cap, Tether (USDT) is in the top spot. Then comes 1:1 stablecoins to the US dollar such as USDC, BUSD, TUSD, USDD. In addition to these, cryptocurrencies such as USDP, GUSD, USTC, FRAX, FDUSD draw attention.
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