Stablecoin CEO Jeremy Allaire predicts that stablecoins could make up 10% of the global economic money in the next decade or more. Allaire highlighted several factors that could drive the widespread adoption of stablecoins over the next 10 years. He explained that major payment companies are actively using stablecoin technology and exploring its expansion as the benefits become evident. The potential market size for stablecoins is in the billions, and incorporating digital currencies on blockchains can help bank the unbanked, reduce remittance costs, and facilitate seamless cross-border commerce. Allaire believes that stablecoins will increasingly dominate the $100 trillion market for electronic money by 2025. Currently, the stablecoin market is valued at $162 billion, making up only 0.2% of the $80 trillion money market. To achieve Allaire’s prediction of stablecoins accounting for 10% of the global economic money by 2034, the stablecoin market would need to grow at an annual compounded rate of 47.7%. Allaire’s Circle, which issues the USD Coin (USDC), currently has a market cap of $32.8 billion, making it the second largest stablecoin after Tether (USDT). Allaire is also bullish on the broader cryptocurrency market, predicting that cryptocurrency adoption could reach billions of users across millions of applications in the next decade. He believes that smart contracts on public blockchain infrastructure could revolutionize commerce and finance, and some onchain organizations could outperform multinational corporations in the future.
Circle CEO predicts that stablecoins will account for approximately 10 of the global currency supply within the next decade