JPMorgan: $1T stablecoin market forecast is overly optimistic

JPMorgan has described predictions that the stablecoin market will grow to $1 trillion in the coming years as overly optimistic, The Block reported, citing a new report from the bank. The financial giant argued that stablecoin growth is not independent and will likely follow the broader cryptocurrency market's trend rather than significantly outpace it. According to the report, a key issue is that the growth drivers for stablecoins are confined to activities within the crypto ecosystem, with most demand stemming from DeFi lending and derivatives trading. Taking these factors into account, JPMorgan projects the stablecoin market will reach a maximum size of $600 billion by 2028.