JPMorgan Questions Stablecoin Growth Narrative Despite Surge

• Experts headed by managing director Nikolaos Panigirtzoglou have identified velocity as the most important indicator for stablecoin market cap development.
• The researchers said that the GENIUS Act, passed last year in the US, was a big reason for this acceleration.

Proof of significant global adoption is the +673% rise in stablecoin active addresses in the last five years. Nevertheless, the analysts at JPMorgan are challenging the notion that an increase in consumption would always lead to a rise in market capitalization.

According to JPMorgan’s estimations, stablecoin transactions have reached an accelerated annualised rate of almost $17.2 trillion so far this year. The researchers said that the GENIUS Act, passed last year in the US, was a big reason for this acceleration. It was the first federal legal framework for stablecoins and it allowed institutions and merchants to use them more widely.

As stated by TheBlock, experts headed by managing director Nikolaos Panigirtzoglou have identified velocity as the most important indicator for stablecoin market cap development. Here, “frequency” means how often the same stablecoin is traded.

Latin America Market

The $174 billion Latin America remittance industry is worth exploring outside the US-to-Mexico corridor, according to an official from Bybit. Fintech and stablecoin businesses should think about it.

Bybit Chief Marketing Officer Claudia Wang noted in a Sunday post on X that most corporations have overlooked the faster-growing corridors between the US and Central America and remittances inside Latin America, in addition to the $61.8 billion US-Mexico remittance sector.

Companies like MoneyGram and Western Union have basically formed the backbone of the American remittance industry. Nonetheless, once the GENIUS Act was passed in July, both of them revealed their intentions to launch stablecoin infrastructure. The USDPT stablecoin, created by Western Union and backed by the US dollar, is nearing completion and is anticipated to debut this month.

Highlighted Crypto News Today:

Ethereum Foundation Sells Another 10K ETH to BitMine for $22.9M