$1T Stablecoin Surge: Next Crypto Rally?

A significant increase in the global stablecoin supply is predicted, potentially acting as a major catalyst for future cryptocurrency market growth. This forecast comes from David Pakman, managing partner at CoinFund, who anticipates a surge to $1 trillion by the end of 2025.

Stablecoin Adoption Upswell

During a recent Cointelegraph Chainreaction show, Pakman highlighted a rapid increase in stablecoin adoption. He projects growth from the current $225 billion to a staggering $1 trillion within the year, representing a substantial shift for blockchain finance.

While this growth is relatively modest compared to traditional financial markets, Pakman emphasizes its significance for the blockchain ecosystem. This on-chain capital influx, coupled with growing interest in exchange-traded funds (ETFs), could significantly boost decentralized finance (DeFi) activity. He suggests that ETFs allowing staking rewards could unlock substantial growth in DeFi.

Impact on DeFi and Bitcoin

Pakman believes this influx of capital is a crucial element that has been missing for over a decade. The massive movement of wealth onto the blockchain could bring in many new users. The current stablecoin supply, exceeding $208 billion (as of March 28, 2025, according to Glassnode), supports this theory. This recent surge above $219 billion further indicates that the market might still be in the middle of a bull cycle, not at its peak, according to IntoTheBlock analysts.

Increased Stablecoin Payments

The rising use of stablecoins for daily payments underscores the efficiency of blockchain transactions. Pakman points to a 22x increase in stablecoin volume since 2021, with transaction sizes decreasing, suggesting their use as payment tools rather than large transfers. This aligns with observations from Ki Young Ju, CryptoQuant's CEO, who notes the increasing use of stablecoins for remittances and as a store of value. However, Ju cautions that a rise in stablecoin supply alone might not automatically pump Bitcoin's price; other factors are necessary.

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