The market capitalization of stablecoins has surpassed $200 billion, with USDT and USDC leading the way. With the support of policies like the (GENIUS Act), the application of stablecoins in everyday transactions is becoming increasingly widespread. It is expected that by 2028, the scale of the stablecoin market may soar to $2 trillion. So, can the rise of stablecoins truly surpass Bitcoin's position in everyday transactions? Let's find out.
Key Points:
Stablecoins have received strong support from the beautiful country's government and various regions worldwide, and their growth momentum is rapid.
Although Bitcoin still maintains its dominant position in the crypto market, the total market capitalization of stablecoins has quietly approached $200 billion.
In countries experiencing hyperinflation, such as Venezuela and Argentina, stablecoins are not only transaction tools but are also regarded as essential financial instruments.
Digital Asset Executive Director Bo Hines stated that both parties in the beautiful country are promoting the expansion of the stablecoin market.
A recent report by Standard Chartered Bank indicates that the upcoming (GENIUS Act) could propel stablecoins to new heights, making them the new mainstay of digital currency.
While Bitcoin's performance once attracted global attention and recently joined the beautiful country's strategic crypto reserves, stablecoins, as a new force, are quietly changing the market landscape. They were once exclusive tools for traders, but now they are injecting new vitality into everyday transactions and may become the pillar of the next wave of economic tides.
The Rise of Stablecoins
As of April, the total market capitalization of cryptocurrencies hovered below $3 trillion, with Bitcoin's price remaining around $85,000, yet still firmly holding over 60% of market share. However, the market capitalization of stablecoins has quietly grown and now stands at $200 billion, which is quite impressive.
Unlike cryptocurrencies like Bitcoin, the most notable characteristic of stablecoins is their value stability. They are typically pegged to the dollar at a 1:1 ratio, making them an ideal choice for countries facing hyperinflation. For example, residents and businesses in Venezuela and Argentina have begun using stablecoins as a tool for everyday transactions and value storage. Compared to the highly volatile Bitcoin, stablecoins provide a more reliable alternative currency for the people in these countries.
Currently, Tether's USDT and Circle's USDC account for over 80% of the market share. According to analysis by Andreessen Horowitz, stablecoins (such as USDT and USDC) may have the potential in the future to change global commerce in a manner akin to WhatsApp's impact on global communication, becoming the standard currency for global transactions.
Washington's embrace of stablecoins
The rise of stablecoins is not coincidental; Washington (the beautiful country's government) is highly attentive to their potential. Digital Asset Executive Director Bo Hines publicly supported this asset class in an interview with Anthony Pompliano and stated that leaders from both the Republican and Democratic parties are promoting the development of the stablecoin market.
Today, the beautiful country's government views stablecoins as an important weapon against other countries, particularly the digital yuan (a new digital currency from a certain country). In the global competition of digital currencies, the beautiful country is accelerating its actions. The Trump administration has tirelessly promoted the development of tokenization, staking, and ETFs while clarifying regulations related to cryptocurrencies.
Additionally, the International Monetary Fund (IMF) recently released a report stating that stablecoins could reduce cross-border remittance costs by up to 50% within a few years. This represents a revolution for millions who rely on cross-border remittances.
GENIUS Act: The Accelerator of the Stablecoin Revolution
The (GENIUS Act) will serve as a catalyst for further development of the stablecoin market. This legislation aims to 'guide and establish national innovation for stablecoins in the beautiful country' and has been approved by the Senate Banking Committee, with expectations for presidential signing in mid-2025.
Analysts believe that the passage of the (GENIUS Act) will trigger a significant increase in the supply of stablecoins and further drive market expansion. By the end of 2028, the total market value of stablecoins is expected to exceed $2 trillion, injecting a shot of adrenaline into the global cryptocurrency market.
The Future of Stablecoins: The Challenger to Bitcoin
Although Bitcoin remains the leader in the market, steadily growing stablecoins have gradually become a new driving force in the global economy. From an initial trading tool to now an essential financial product, the identity of stablecoins is undergoing a fundamental change. They are expected not only to change the way global trade functions but also to provide solutions for millions of countries troubled by inflation.
In the future, stablecoins will not just be supporting actors in the cryptocurrency market; they have already become an important part of the global economic system and will continue to grow in the coming years.
