According to a report by Cointelegraph, Jeremy Allaire, CEO of stablecoin issuer Circle, believes that stablecoins could account for 10% of the “global economic currency” in the next decade or longer. He pointed out several factors that could contribute to the exponential growth of stablecoins in the next ten years.
On Wednesday (19th), Allaire explained on the X platform that the potential market size could reach “billions,” and releasing digital dollars on the blockchain could provide banking services for those without bank accounts, reduce remittance costs, and enable seamless cross-border commerce. He noted that stablecoins are becoming an increasingly accepted form of digital currency, and by the end of 2025, stablecoins 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 a stablecoin, and when credit intermediaries shift to on-chain credit markets?” He believes that “all of this is achievable in the next decade or more.”
Source: Jeremy Allaire
Currently, the total market value of stablecoins is $162 billion. According to World Population Review data, this market accounts for only 0.2% of the $80 trillion currency market.
The sizes of savings, money market, and checking accounts are approximately $26.4 trillion, $25 trillion, and $23.6 trillion, respectively, with the remaining $5 trillion being base money (M0). 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.
Anticipating billions of users adopting blockchain networks
Allaire’s optimism is not limited to the stablecoin market. He believes that in the next 10 years or longer, the adoption of cryptocurrencies could increase to “billions of users,” involving “millions of applications,” and more business and financial operations will be executed through smart contracts on public blockchain infrastructure.
Allaire even suggests that the performance of some on-chain organizations during this period could surpass that of multinational companies, although he did not provide detailed explanations on how and in which areas it would exceed.
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).