JPMorgan analysts have noted that despite the increasing use and on-chain transaction volume of stablecoins, their market capitalization may not expand proportionally. This is attributed to the rising 'velocity' of stablecoins, where each unit is used more frequently over a given period, enhancing efficiency and reducing the need for new supply. Current data shows that the annualized on-chain transaction volume of stablecoins is approximately $17.2 trillion, with a market cap growth of nearly $100 billion over the past year. Including interest-bearing stablecoins, the total market cap exceeds $300 billion. The use cases for stablecoins are expanding from crypto trading and collateral to payment sectors, with notable growth in consumer-to-business (C2B) and merchant payments, particularly in Asia.
JPMorgan Highlights Stablecoin Velocity Impact on Market Cap
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