Stablecoins have witnessed significant success this year, hitting an all-time market cap of $200 billion. For starters, these types of cryptocurrencies mimic the prices of fiat currencies, such as Euros and USD. As of December 2024, they account for about 5% of the total market cap.
With 2025 on the horizon, BTCExpanse has rounded up the expected stablecoin trends for next year. Stick around to learn more!
Stablecoin Market Cap to Reach $300 Billion With USDC and USDT Retaining Dominance
Several analysts have claimed that two of the biggest stablecoins by market cap, Circle’s USDC and Tether’s USDT, will likely maintain their dominance next year. Guy Young, the CEO of the Ethena decentralized stablecoin protocol, predicts that USDT will retain the top spot in 2025, with the total stablecoin market cap touching $300 billion.
Similarly, Chief Marketing Officer at Alchemy Pay, Ailona Tsik, says USDC and USDT are already known for their role in facilitating cross-border transactions and expects the adoption of the two stablecoins to accelerate in 2025.
Meanwhile, USDC’s co-operator Coinbase said earlier this month that stablecoins were just getting started. Its statement prompted some analysts to project that these crypto assets could achieve a $3 trillion market cap by 2030.
Stablecoin Payments to Increase
Leading payments processing company Visa says more Fintech firms will likely embrace stablecoins in 2025 thanks to the tokens’ ability to facilitate global payments. Head of Crypto at Visa, Guy Sheffield, claims that several debit/credit card issuers could consider introducing stablecoin-linked cards to allow holders to spend their backed digital currencies.
Uphold boss Simon McLoughlin is another crypto enthusiast optimistic about stablecoin adoption in 2025. He believes that next year, stablecoins will go mainstream as more payment processors consider them the best option for facilitating international transactions.
Meanwhile, BitPay’s Senior Marketing Officer Bill Zielke reveals that stablecoins represented about a quarter of this year’s volume on the cryptocurrency payments protocol despite accounting for only 5.3% of all transactions. He further discloses that the average Bitcoin transaction value on BitPay was approximately $1,000, while the average USDC transaction value was roughly $5,000 in 2024.
Zielke expects stablecoins to continue solidifying their vital role in business-to-business payments next year.
Regulations Will Remain Inconsistent Worldwide
While many analysts are optimistic about the growth of stablecoins in 2025, there is a probability that policies around these digital currencies will remain inconsistent across the world.
Ben Reynolds, the Head of Stablecoins at BitGo, says regulatory uncertainty will remain a massive challenge next year. He, however, expects calls for clear rules to intensify.
True Markets CEO Vishal Gupta, on the other hand, argues that inconsistent regulatory frameworks may hinder stablecoins’ growth in 2025. He points to a regulatory inconsistency caused by the introduction of the restrictive Markets in Crypto Assets Regulation framework, which has forced many stablecoin issuers out of the Europen Union region.
However, Gupta says countries that introduce favorable and clear stablecoin rules in 2025 will likely become hosts of numerous stablecoin issuers who, for a long time, have been calling for regulatory clarity and a fair business environment.
Layer-2 Stablecoin Adoption Will Rise
Zielke is positive that several stablecoin issuers will deploy their tokens on various layer-2 networks in 2025. As layer-2 stablecoin adoption grows, opportunities for generating yield by staking stablecoins are expected to expand.
Furthermore, he says the introduction of stablecoins to layer-2 networks will accelerate calls for interoperability to enable crypto users to move these tokens across various blockchains seamlessly. As of December 2024, stablecoin holders are required to use blockchain bridges to transfer their coins from one network to another.
Exotic Stablecoins to Enter the Market
When stablecoins on layer-2 networks start generating yield for their holders in 2025, some issuers will likely introduce those that offer higher yields to attract people who may buy them without understanding the risks involved. Gupta urges retail investors not to be enticed by promises of higher returns to avoid losing funds.
