Stablecoin Velocity Could Limit Market Cap Growth, JPMorgan Analysts Say

JPMorgan analysts have highlighted that the increasing velocity of stablecoins might restrict market cap growth, despite on-chain transaction volumes projected to reach an annual pace of $17.2 trillion by 2026. According to NS3.AI, the analysts noted that the stablecoin market cap has expanded by nearly $100 billion over the past year, now surpassing $300 billion, including yield-bearing stablecoins. JPMorgan emphasized that enhanced efficiency allows the existing stablecoin supply to facilitate more payments, supporting their forecast of a lower long-term market cap.