Stablecoin

Terra

Trillion

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<p class="has-drop-cap">Researchers at Bernstein expect the stablecoin market cap to grow 2,140% over the coming 5 years and hit $2.8 trillion from today’s $125 billion. The projection comes as stablecoins continue to garner the attention of both crypto and non-crypto companies, with <a href="https://tokenist.com/paypal-to-launch-stablecoin-backed-by-us-dollar-deposits-and-t-bills/" rel="noopener noreferrer nofollow" class="deco-link">PayPal being the latest giant to embrace</a> these fiat-pegged currencies.&nbsp;</p> 
<h3 id="stablecoin-market-worth-to-hit-2-8-trillion-in-2028-bernstein-projects">Stablecoin Market Worth to Hit $2.8 Trillion in 2028, Bernstein Projects</h3> 
<p>The global stablecoin market is projected to hit a market cap. of $2.8 trillion over the following five years, brokerage firm Bernstein noted in a new research report. Considering that the stablecoin market is currently worth around $125 billion, achieving this figure would represent a remarkable growth of 2140% over the forecast period.&nbsp;</p> 
<p>If this projection comes to fruition, it would imply that the stablecoin market could hold a significantly higher value in five years compared to the current valuation of the entire cryptocurrency market, which stands at approximately $1.23 trillion.</p> 
<p>According to Bernstein, stablecoins’ integration with consumer platforms is expected to become a major growth catalyst for this type of digital asset. This is because such integrations allow stablecoins to attract more users and spur distribution beyond crypto native platforms.&nbsp;</p> 
<p>Currently, the stablecoin space is primarily dominated<a href="https://tokenist.com/usdts-market-cap-hits-new-ath-at-83-25b-while-other-stablecoins-shrink/" rel="noopener noreferrer nofollow" class="deco-link"> by Tether’s USDT</a>, which has a market of more than $83 billion at the time of writing. The runners-up are USDC and DAI, with market valuations of $3.5 billion and $146 million, respectively. While individuals also use it, USDC is more prevalent among businesses as it offers an open-source smart contract allowing other companies to develop their blockchain products.&nbsp;</p> 
<p>Meanwhile, algorithmic stablecoins, which aim to maintain stability through on-chain algorithms and mechanisms instead of relying on fiat collateral, have seen diminished popularity in the recent period. One of the main factors behind this decline was the <a aria-label="contagious collapse of the Terra ecosystem (opens in a new tab)" href="https://www.nytimes.com/2022/05/18/technology/terra-luna-cryptocurrency-do-kwon.html" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">contagious collapse of the Terra ecosystem</a> last year.</p> 
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<h3 id="cbdcs-a-noteworthy-contender-to-stablecoin-s-dominance">CBDCs, a Noteworthy Contender to Stablecoin’s Dominance</h3> 
<p>While the growth of stablecoins is anticipated in the upcoming years, their trajectory is likely to encounter challenges. Central bank digital currencies (CBDCs) could emerge as a significant contender.&nbsp;</p> 
<p>This is because CBDCs are government-issued digital currencies that offer specific benefits similar to stablecoins while backed by national central banks’ credibility and regulatory support.</p> 
<p>Currently, China is leading the global CBDC race as the country continues to make non-stop efforts to boost the adoption of the digital yuan. At the same time, more central banks hopped on the CBDC bandwagon recently, <a href="https://tokenist.com/japan-joins-the-cbdc-race-will-conduct-tests-in-april/" rel="noopener noreferrer nofollow" class="deco-link">including Japan</a>, South Korea, and Russia.</p> 
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<p><em><strong>Do you view Bernstein’s growth projection for stablecoins as realistic? Let us know in the comments below. </strong></em></p> 
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/stablecoin-marketcap-expected-to-grow-2140-in-5-years-as-paypal-enters/">Stablecoin Marketcap Expected to Grow 2,140% in 5 Years as PayPal Enters</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Stablecoin Marketcap Expected to Grow 2,140% in 5 Years as PayPal Enters

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