According to Odaily, a recent research report by JPMorgan indicates that the supply of stablecoins has been steadily increasing. However, this growth does not imply that stablecoins are capturing a larger share of the cryptocurrency market. Instead, it signifies an overall increase in the total market value of digital assets. The report highlights that the surge in stablecoin supply is driven by significant price increases in Bitcoin and Ethereum, which have led to a rise in the market capitalization of the crypto market, subsequently boosting the demand for stablecoins.
Additionally, the introduction of a spot Bitcoin exchange-traded fund (ETF) in the United States earlier this year has contributed to the growing use of stablecoins by investors entering the crypto market. This development has further fueled the demand for stablecoins, reflecting their role as a gateway for new investments in the digital asset space.