The stablecoin market continues to demonstrate its important role in driving the overall growth trend of the financial industry. Recently, the total market capitalization of the stablecoin market has officially surpassed the $225 billion mark.
According to data from defillama, this figure has increased significantly from the level below $140 billion at the end of 2023, with a notable jump of more than $25 billion following Donald Trump's victory in the presidential election in November.
Businesses around the world are increasingly accepting payments in stablecoin at an unprecedented growth rate. A report from VISA shows that the total trading volume using stablecoin has exceeded $4.7 trillion in the past 30 days. Major transactions, such as Stripe's acquisition of the stablecoin platform Bridge, are accelerating this trend.
Experts predict that the stablecoin market capitalization could reach $400 billion by 2025 as more institutions and individuals recognize the potential of this asset class. On-chain data also indicates that stablecoin is gradually becoming the preferred choice, challenging traditional financing methods. This trend is not accidental but driven by many specific factors that have a far-reaching impact on the position of stablecoin in the global financial system.
The strong development of stablecoin in the coming years is forecast to be based on four main factors:
Stablecoin is emerging as a safe alternative to traditional financing methods, with high transparency and the ability to minimize risk. Particularly in underdeveloped or developing regions, stablecoin is seen as a stable store of value, supporting cross-border transactions and mitigating volatility.
In the context of banks considering issuing stablecoin to maintain competitiveness, investors have more opportunities to participate in projects aligned with global financial trends. At the same time, the interest of countries and central banks in Bitcoin strategy further highlights the change in financial approach. In the Eurodollar market, stablecoin is becoming an effective tool for managing cash flow and currency risk for institutions, governments, and individuals.
Countries like Bhutan and El Salvador have achieved significant profits from holding strategic Bitcoin reserves. In the US, more than 20 states are planning to establish their own digital asset reserve funds. In the context of growing inflation concerns, a strategic shift in national digital asset policy could encourage other countries to follow suit, further driving the adoption of stablecoin.
Decentralized retail wallets are expected to apply payment models similar to traditional finance (TradFi) practices. At the same time, banks are entering a new competitive race, with plans to issue their own stablecoin by the end of 2025 to maintain relevance in the increasingly digitized and decentralized financial ecosystem.
The EU's Crypto Asset Markets (MiCA) regulation has set standards for the stablecoin ecosystem, providing a clear legal framework and standardization for issuers. Despite some dissenting opinions, MiCA has created a more stable environment, encouraging more market participants.
In the US, similar regulations are gradually being developed, helping to reduce risk and strengthen investor confidence. Transparency in regulation will lead to more predictable market behavior, promoting the long-term development of stablecoin.
The increase in stablecoin market capitalization, along with fluctuations related to political events, is revealing a profound transformation in the global financial system. The adoption of stablecoin is not just a temporary trend, but an important step towards a faster, more transparent, and more cost-effective financial system.
Advanced technology, improved products, and strong legal support will continue to drive this change. Fortune 500 companies are preparing to offer cryptocurrency options, while tech companies are increasingly willing to take risks to exploit the potential of stablecoin. These developments signal a future where stablecoin becomes the standard in global financial transactions.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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