JPMorgan: Stablecoin Usage Growth May Not Drive Similar Market Cap Expansion Due to Rising Velocity

According to JPMorgan analysts, stablecoin usage is growing rapidly, but this may not translate to equivalent market capitalization growth. The key factor is rising velocity—how frequently stablecoins are used in transactions. JPMorgan’s team, led by managing director Nikolaos Panigirtzoglou, noted in a report that increased velocity allows the same amount of stablecoins to handle significantly more transactions, which would likely limit market expansion even as payment adoption grows exponentially.

Stablecoin market cap has increased by nearly $100 billion over the past year, reaching above $300 billion when including yield-bearing stablecoins. On-chain transaction volume is estimated at an annual pace of $17.2 trillion this year, with accelerated growth following the U.S. GENIUS Act passage last year.