The stablecoin market has stalled at a $300 billion valuation, as reduced trading activity and a declining US dollar impact demand. Despite adding $103 billion to its supply last year, the market has struggled since a significant leverage wipeout in October. Analysts attribute the stagnation to lower trading volumes and a 9% decline in the dollar's strength over the past year, making dollar-pegged assets less attractive.
Efforts to integrate stablecoins into financial services continue, with major firms like Visa and the New York Stock Exchange launching pilot programs. However, demand remains closely tied to crypto market fluctuations. Analysts suggest that the next growth phase will be driven by stablecoins' integration into financial infrastructure through tokenisation, which could enhance financial processes and accountability.
Stablecoin Market Stagnates at $300 Billion Amid Market Volatility
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