Next Generation predicts an impressive growth trajectory for stablecoins and expects them to emerge as the dominant payment method by 2029.
According to Finextra, the company’s president, Suren Khairyan, said 2024 was a pivotal year, marking significant advances in blockchain technology that will be essential to improving transaction speed, accessibility, and cost efficiency across the financial sector. emphasized.
This year, stablecoin market capitalization set a new record and reached an all-time high due to cutting-edge technology, a clearer regulatory framework, and increased adoption by institutional investors. This surge has been supported by strong demand for stablecoins, especially those pegged to the euro, facilitated by increased regulation by MiCA. Heiliyan emphasized that the difference in trading volume between fiat currencies and Eurocoin is a key factor in the growth forecast, with the market capitalization of Europegged stablecoins expected to reach $25 billion by 2028 and $500 billion by 2029. It is expected to reach $1 billion.
Looking ahead, Next Generation predicts that by 2026, stablecoin issuance will be common among large banks and substantial FinTech companies, but less so among smaller companies. Hayriyan predicts that by the end of 2028, large financial institutions will diversify their portfolios to include multiple stablecoins in different currencies in response to the demand for multi-currency functionality in global payments.
In 2029, the situation is likely to reach a saturation point and competition will increase as more companies enter the market. The company also predicts a significant increase in investment in stablecoin projects, with annual investment expected to jump from $500 million currently to $12 billion by 2029. Additionally, regulatory developments will likely shift trading dynamics from primarily peer-to-peer to primarily institutional use. This trading is expected to account for more than 90% of trading volume by the end of the 2010s.
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