According to TechFlow, on August 15, Coindesk reported that the JPMorgan report pointed out that the supply of stablecoins has been growing, but this expansion does not mean that it is taking over the market share of cryptocurrencies; on the contrary, it is mainly a sign of an increase in the total market value of digital assets.
In the report, the team led by analyst Nikolaos Panigirtzoglou pointed out that the market value of stablecoins has rebounded to $165 billion, close to the high of $180 billion before the Terra/Luna crash. The reasons for the growth of the stablecoin market include the sharp rise in the prices of Bitcoin and Ethereum, which has led to an increase in the market value of the crypto market, thereby driving the growth of stablecoin supply. These tokens are used as collateral in crypto lending and other transactions.
In addition, since the launch of a spot Bitcoin exchange-traded fund (ETF) in the United States in January this year, investors have increasingly used stablecoins to enter the crypto market, which has also boosted demand. New stablecoin issuers and products have also emerged this year, such as Ethena's USDe. Regulatory clarity in Europe, especially the Markets in Crypto Assets (MiCA) legislation introduced on July 1, has also attracted investors to the stablecoin space.
