Stablecoins: the 2025 revolution on the horizon

Stablecoins: the 2025 revolution on the horizon

Stablecoins are expected to grow explosively in 2025, suggesting that the asset class will gain mass adoption. The stablecoin market will close 2024 with many records and positive developments. Tether and Circle remain the main players, with USDT and USDC dominating the market, while alternative currencies are struggling with slow adoption due to loss of confidence after past collapses.

The year 2024 has been a successful one for cryptocurrencies in general, with Bitcoin reaching $100,000 in value and increasing regulation, which has encouraged stablecoin issuance. In Singapore, stablecoin payments reached $1 billion.

What trends can we expect in 2025?

1. Growth of regulated stablecoins: financial institutions will begin to issue more regulated stablecoins, with Tether already proving successful in this model.

2. Changes in European markets.

3. Local stablecoins: with the increasing digitization of economies, stablecoins pegged to local currencies are expected to grow. An example is AE Coin, which will be regulated by the central bank of the United Arab Emirates.

4. Market dynamics and competition: New regulations and participants will transform the stablecoin market from a niche instrument to a mainstream asset class, leading to faster and cheaper financial services.

The year 2025 therefore promises mass adoption of stablecoins, with the prospect that their combined capitalization could double or triple. Moreover, local stablecoins may diversify the market and challenge the dominance of the dollar. Stable tomorrows are on the horizon!

*This is not investment advice.

Coingarage team