According to CoinFund's forecasts, the global stablecoin supply could reach $1 trillion by the end of 2025, acting as a major catalyst for the cryptocurrency market expansion.
Stablecoin Supply Increase
CoinFund's managing partner David Pakman expressed that we are in a stablecoin adoption upswing, likely to increase dramatically this year. Pakman noted that such growth, while modest compared to global financial markets, represents a significant shift for blockchain-based finance. As of March 28, the aggregate stablecoin supply reached an all-time high of $208 billion.
Impact on DeFi and ETFs
Pakman suggested that the rise in capital flowing on-chain, combined with growing interest in exchange-traded funds (ETFs), could support further development in decentralized finance (DeFi). If ETFs are allowed to provide staking rewards or yields to holders, it could significantly enhance DeFi activity.
Rising Payment Adoption
Stablecoins use for daily payments is on the rise, illustrating the efficacy of blockchain-based transactions. There has been a significant decrease in the size of each stablecoin transaction, pointing to their increased use for payments rather than large transfers.
The growth in stablecoin supply and usage can become a critical catalyst for the cryptocurrency market in the coming years, supporting the development of new financial products and services.
