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Stablecoin market could cap $2T by 2028, reports U.S. Treasury – Details
A recent report from the U.S. Treasury has forecasted a staggering growth in the stablecoin market, with potential to reach an impressive $2 trillion by 2028. This monumental increase would be a significant shift from the current market size of $239 billion, as recorded by CoinMarketCap data.
The Treasury’s prediction highlights the sector’s immense potential and the importance it has gained within the crypto ecosystem. The stablecoin market, largely pegged to the U.S. dollar, could provide an additional source of demand for treasury bills (government bonds), according to the report. This is in addition to the sector being a ‘new payment mechanism’ and growing source of interest.
The sector’s growth has been driven by its versatility beyond cryptocurrency speculation, with applications like international transactions also gaining traction. According to venture capital firm a16z, stablecoins are on the verge of becoming a mainstream phenomenon.
Stablecoin transaction volumes have hit record highs in April, with $1.82 trillion worth of transactions recorded. This growth could have far-reaching implications for the overall crypto market, including Bitcoin (BTC).
The U.S. Treasury’s forecasted growth has also sparked concerns about the potential for yield-bearing stablecoins to rival traditional bank deposits. However, this development is expected to have a significant impact on the crypto sector.
Tracy Jin, Chief Operating Officer at MEXC, a leading cryptocurrency exchange, shared her insights on the matter. According to Jin, the influx of fiat inflows into Tether (USDT) and Circle’s USDC could push Bitcoin prices higher. In fact, Jin stated that every additional billion in stablecoins is likely to cause an 8-10% increase in BTC price.
While there may be concerns about the potential risks associated with this growth, one thing is certain: the stablecoin market has become a crucial component of the crypto ecosystem.
Source: https://ambcrypto.com/stablecoin-market-could-cap-2t-by-2028-reports-u-s-treasury-details/
