Stablecoin Usage Rises, Market Cap Growth May Not Follow, JPMorgan Analysts Say

JPMorgan analysts have observed that the increasing use of stablecoins might not lead to proportional growth in market capitalization. According to NS3.AI, the onchain stablecoin transaction volume is currently running at an annual pace of approximately $17.2 trillion this year. The analysts noted that higher stablecoin velocity allows the same supply to facilitate more transactions. JPMorgan reported that the stablecoin market cap has expanded by nearly $100 billion over the past year and surpasses $300 billion when yield-bearing stablecoins are included.