Stablecoins Reach $190 Billion Market Cap, Transforming Global Transactions (2024.12.03)

Key Highlights:

• Critical Role in Emerging Markets: Stablecoins are indispensable for payrolls, savings, and daily transactions in emerging economies.
• Recovery and Growth: After losses in 2022, the stablecoin market has rebounded, growing by 50% over the past year.
• Market Leaders: Tether (USDT) and USD Coin (USDC) dominate, showcasing their importance to global financial systems.

Stablecoins’ Rapid Growth 🌟

The stablecoin market has surged to a $190 billion market capitalization, driven by their rising adoption in countries facing economic challenges.

• 69% of survey respondents have converted local currencies into stablecoins for practical use in volatile economies.
• These digital assets are increasingly used for everyday financial activities: Payrolls, Savings, Cross-border payments, and Purchases.

The Role in Emerging Markets 📈

Prominent analyst Max Avery emphasizes the growing role of stablecoins in regions like Brazil, Nigeria, Turkey, Indonesia, and India, where they serve as a lifeline amidst:

• High currency depreciation, and
• Underdeveloped banking systems.

Key statistics from a recent study:

• 69% use stablecoins to escape local currency volatility.
• 39% rely on them for purchases, remittances, or cross-border transactions.
• 30% of businesses conduct transactions in stablecoins.
• 23% of companies use them for payrolls.

A Critical Bridge Between Fiat and Digital Assets 🔗

With the majority pegged to the US dollar, stablecoins act as:

• Safe stores of value: Shielding users from inflation.
• Low-cost payment methods: Ideal for regions with limited access to banking infrastructure.

Market Recovery and Resilience 💹

Despite the $19 billion collapse of TerraUSD in 2022, stablecoins have rebounded:

• Market Cap by Mid-2024: $170 billion.
• 2023–2024 Growth: A 46% increase, with overall value growing by 50% year-over-year.

Conclusion

Stablecoins are reshaping global finance, particularly in underbanked regions. Their role in facilitating savings, payments, and financial stability raises an important question: could stablecoins redefine traditional banking in underserved areas?

About ECEBiS

At ECEBiS you are going to understand what will change the trajectory of the financial industry. You will develop a transversal view on the forces that are shaping the future financial industry.

From payments and lending to investment and money management, tech providers are actively shaping the future of the financial landscape - even pushing the boundaries of currency itself. You might evaluate the impact of robo-advising on health management and examine portfolio recommendations from a diversified set of RAs and attempt to identify the factors behind proposed splits between asset classes.

ECEBiS is a platform in academic research on new business models and innovative products. We investigate in fast moving sectors that are reshaping the financial world of tomorrow and pioneering new ways of doing business. We want to attract outstanding ECEBiS students in finance with experiences and exposures, who intend to

Doctorate of Business Administration (DBA) in Finance (online, 3 years part-time)

• develop knowledge on challenges that shape the future of financial industry

• engage with a program that offers the convenience of online learning with the benefits of accreditation and global reach.

• raise awareness on the importance of fintech and sustainability in finance

• identify the best practices in the financial industry to spread positive changes

• Go beyond the virtual classroom and network with other ambitious executives and entrepreneurs as you expand your credibility and expertise in the world’s most transformative fields.