Giant Crypto Platform, Coinbase, Predicts Stablecoin Market Cap Reaching a Whopping Trillion Dollars
Coinbase Predicts Stablecoin Market Cap to Reach $1.2 Trillion by 2028
Coinbase, a leading cryptocurrency exchange, has announced that it is listing the Ethereum-based stablecoin World Liberty Financial USD (USD1) on its platform. This move makes USD1 available on Coinbase's iOS and Android apps for buying, selling, converting, sending, receiving, or storing.
The prediction of the stablecoin market's growth comes from Coinbase's stochastic method and front-end rates model. According to the prediction, the total market capitalization of stablecoins could reach $1.2 trillion by 2028. This absorption would equate to approximately $5.3 billion per week over a duration of 175 weeks or approximately 40 months.
The growth of the stablecoin market is dependent on key factors such as efficient ramps, wide distribution networks, and the expanding roles of market players. Recent regulatory developments, such as the GENIUS Act, might contribute to this growth.
The total market capitalization of top stablecoin tokens, as per CoinMarketCap data, is currently at $287.56 billion. A majority of the IPO proceeds were settled in USDC, with a portion in EURC, and some in PayPal USD (PYUSD) and Ripple USD (RLUSD). However, Coinbase did not specify which stablecoins it is referring to in this prediction.
The stablecoin market cap reaching $1.2 trillion would mean absorbing about $925 billion in U.S. Treasury Bills at its current market valuation. This is a significant increase from the current market capitalization.
Notably, Bullish, a company, received $1.15 billion in revenues from its recently completed initial public offering in stablecoins, a historical first in the US. However, Bullish raised funds in USD, not stablecoins.
The prediction of the stablecoin market cap reaching $1.2 trillion by 2028 does not provide a specific timeframe beyond 2028. Additionally, the article does not provide any details about how the stablecoin market cap has performed historically or in the immediate past, or about the potential impact of other factors, such as market volatility or competition, on the stablecoin market growth.
Coinbase, as the custodian of the IPO proceeds, is responsible for the custody of the IPO proceeds settled in stablecoins. The listing of USD1 on Coinbase's platform is a significant step in the growth of the stablecoin market, and it will be interesting to see how the market develops over the next few years.
