Stablecoin Sector Grows, Faces Zero-Sum Competition: JPMorgan

The stablecoin sector, valued at $270 billion, remains under 8% of the total crypto market cap since 2020, as per a JPMorgan report.

Upcoming U.S. stablecoin launches could lead to market competition unless the overall crypto market significantly grows.
Tether plans to launch USAT, a U.S.-compliant stablecoin, fully aligned with regulatory standards.
Stablecoins are essential in crypto for payments and international money transfers, with Tether's USDT leading, followed by Circle's USDC.
The July enactment of U.S. stablecoin legislation has led to new stablecoin launches targeting USDC's dominance.
Circle faces competition from entities like Hyperliquid, PayPal, Robinhood, and Revolut, which are developing their own tokens.
In response, Circle is creating Arc, a blockchain aimed at enhancing USDC transactions.
Without broader market growth, new stablecoin entrants may only redistribute existing market share.
USDC supply reached $72.5 billion, exceeding Wall Street's forecasts by 25%.