Catenaa, Wednesday, May 06, 2026-Rapid growth in stablecoin usage may not translate into similar expansion in overall market value, as rising transaction efficiency allows the same assets to support a higher volume of activity, analysts at JPMorgan said.
Rising Efficiency Limits Expansion
The bank’s analysts pointed to increasing “velocity,” or how frequently stablecoins are used in transactions, as a key factor shaping future growth. As payment systems improve and adoption widens, the same pool of stablecoins can facilitate more transactions without requiring proportional increases in supply.
Stablecoin usage has accelerated sharply over the past year, driven by broader adoption in payments and financial services. Analysts estimate annualized onchain transaction volumes at about $17.2 trillion, reflecting growing integration into real-world payment flows.
Despite rising activity, analysts maintain a cautious view on market expansion. They project the total stablecoin market could reach between $500 billion and $600 billion by 2028, well below some forecasts that anticipate trillion-dollar levels.
The stablecoin sector has still recorded notable growth, with market capitalization increasing by nearly $100 billion over the past year. Including yield-bearing variants, the total size now exceeds $300 billion, indicating sustained demand.
Shift Beyond Trading Use Cases
The data suggests stablecoins are increasingly used beyond trading and collateral within crypto markets. Payment use cases are expanding, particularly in consumer transactions and merchant services, where adoption is accelerating.
Asia continues to lead global stablecoin usage, while business-related payments are growing faster than peer-to-peer transfers. Analysts link this trend to improved infrastructure and regulatory clarity following recent legislative developments in key markets.
The passage of stablecoin-focused legislation in the United States has also supported growth by providing clearer regulatory frameworks. Analysts note that policy developments and technological improvements together are shaping how stablecoins evolve within the financial system.
