JPMorgan: Stablecoin Usage Growth May Not Drive Similar Market Cap Expansion Due to Rising Velocity

According to JPMorgan analysts led by managing director Nikolaos Panigirtzoglou, rising stablecoin usage over the past year may not translate into proportional market capitalization growth. The key reason is increasing stablecoin velocity, which measures transaction frequency using the same token. Higher velocity allows the same amount of stablecoins to process significantly more transactions, potentially limiting market cap expansion even as payment adoption rises exponentially.

The stablecoin market has grown by nearly $100 billion over the past year, reaching above $300 billion when including yield-bearing stablecoins. On-chain transaction volume is estimated at an annual pace of approximately $17.2 trillion this year, with JPMorgan projecting the broader stablecoin market cap at $500–$600 billion by 2028.