The stablecoin market has experienced significant growth in 2024, with its market cap increasing by over 50% to $200 billion. Experts predict that the market value could reach $400 billion in 2025. The key factor driving this growth is the anticipation of regulatory clarity, which could attract traditional financial institutions and banks to issue their own stablecoins. Stablecoins, which are pegged to fiat currencies like the US dollar, are also seen as an opportunity for the US to extend the dollar's reserve currency status. Ethereum has become the main blockchain for stablecoin issuance, and its role is expected to expand further with the introduction of regulations. However, the US lags behind in terms of regulatory framework, which has led to Tether, the largest stablecoin issuer, being headquartered outside the country. Stakeholders in the industry are calling for federal laws to define stablecoins as legal digital cash. Despite regulatory uncertainty, stablecoins continue to grow, driven by increased adoption in decentralized finance, and USDT remains the dominant stablecoin with a market capitalization of $140 billion.



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