According to a report by Cointelegraph, Jeremy Allaire, the CEO of stablecoin issuer Circle, believes that stablecoins could account for 10% of the “global economic currency” in the next decade or longer. He highlighted several factors that could lead to exponential growth of stablecoins in the coming years.
Allaire explained on the X platform on Wednesday the 19th that the potential market size could reach “billions” and releasing digital dollars on the blockchain could provide banking services to the unbanked, reduce remittance costs, and enable seamless cross-border commerce. He pointed out that stablecoins are becoming an increasingly accepted form of digital currency, and by the end of 2025, they will occupy a “growing share” in the $100 trillion global electronic currency market.
Allaire wrote, “What does it look like when 10% of the global economic currency is stablecoins and when credit intermediation moves to on-chain credit markets?” He believes that “all of this is achievable in the next decade or more.”
Currently, the total market value of stablecoins is $162 billion, which accounts for only 0.2% of the $80 trillion currency market, according to data from the World Population Review.
The sizes of savings, money market, and checking accounts are approximately $26.4 trillion, $25 trillion, and $23.6 trillion, respectively, while the remaining $5 trillion is the base money (M0). It is reported that in order to achieve Allaire’s 10% prediction by 2034, the stablecoin market would need to grow at a compound annual growth rate of at least 47.7%. However, this estimate does not take into account the growth of the $80 trillion currency market.
Allaire’s optimism is not limited to the stablecoin market. He believes that the adoption of cryptocurrencies could increase to “billions of users” in the next 10 years or longer, involving “millions of applications,” and more business and financial operations will be executed through smart contracts on public blockchain infrastructure.
Allaire even suggests that some on-chain organizations may outperform multinational corporations during this time period, although he did not provide specific details on how or in which areas they might surpass them.
According to data from CoinGecko, USD Coin (USDC), issued by Circle, currently has a market value of approximately $32.8 billion, making it the second-largest stablecoin after Tether (USDT).
