Experts from the American investment bank JPMorgan expressed the opinion that the rapid growth of stablecoins, such as Tether’s USDT, may indicate the imminent growth of digital currencies.
Analysts said in an interview with Cointelegraph that the share of stablecoins in the total market capitalization of the crypto market has been growing recently, reaching new all-time highs by mid-June.
According to a JPMorgan report, the share of all stablecoins has grown by 17%, which is significantly higher than in 2020. When the share of stablecoins is lower, this, according to experts, indicates a limited upside potential for cryptocurrencies. Currently, the value of all stablecoins is $155 billion, and the total market capitalization of the market is $946 billion.
JPMorgan has teamed up with Singapore-based DBS Bank to explore the economic potential of cryptocurrencies and consider options for their use as part of the Project Guardian project of Singapore’s central bank.
Earlier, the Board of Directors of the US Federal Reserve System released a report in which it called stablecoins a potential risk to the financial stability of traditional markets. According to the Fed, stablecoins that are not backed by safe and sufficiently liquid assets create risks for investors.
Source: Bits
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