July 03, 2024 at 11:35PM
J.P. Morgan says the rally in crypto/bitcoin so far this year has fueled much of the growth in stablecoins:
In contrast to last year when market participants were still reeling from the collapses of several high-profile crypto entities, the regional banking crisis, and of course, the Fed’s tightening campaign, the stablecoin market is growing once again.
JPM cite industry sources saying the size of the stablecoin market is around US$160bn today
30% increase from the local low in late 2023
just shy of the peak of $180bn in early 2022
Tether remains the primary player, comprising nearly 75% of this market
over $110bn of coins in circulation (a record high)
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A stablecoin is a type of cryptocurrency designed to maintain a stable value relative to a reference asset, typically a fiat currency like the US dollar or a commodity like gold:
can provide the price stability of fiat currencies
while retaining the advantages of cryptocurrencies, such as fast transaction speeds and low fees
widely used for trading, lending, and as a medium of exchange in decentralized finance (DeFi) applications
This article was written by Eamonn Sheridan at www.forexlive.com.