Jump Capital partner Peter Johnson, who invests in the fintech and cryptocurrency sector, believes that the main growth in the stablecoin market will be provided by USDC and UST, gradually replacing USDT.
“At Jump Capital, we have long believed in stablecoin adoption and included growth in our forecasts for 2020 and 2021. Now that the supply exceeds $ 140 billion, we see no signs of slowing down the adoption of stablecoins and believe that the market will eventually grow to several trillion dollars, ”said Peter Johnson.
He noted that previously, stablecoins were mainly used for trading, but in 2022 their use for international transactions and as a safe asset in countries with volatile currencies will become more evident. In addition, partner Jump Capital believes that USDC and UST will gradually oust USDT from the stablecoin market:
“We believe that in the stablecoin market, most of the growth will come from USDC and UST, as they have established themselves as the dominant centralized and decentralized stablecoins. As USDC and UST grow, the market share of USDT (Tether) will decrease significantly. ”
Johnson believes that stablecoins will be one of the factors that will drive the cryptocurrency market. He recalled that the first companies that started using the Internet were called “Internet companies” or “dot-coms”, but these terms have ceased to be used, since the introduction of the Internet has moved into a cycle of global use.
Likewise, Johnson believes that over time, most companies will adopt cryptocurrency in one way or another, offering products based on it, using stablecoins for payments, allowing access to Web 3.0 and using NFT. Johnson expects to see widespread adoption of cryptocurrency across many industries in 2022, and predicts that trend will accelerate in the coming years.
Recently, FTX CEO Sam Bankman-Fried advised industry participants to focus on working with regulators using stablecoin projects. In addition, the exchange offered a prize of $ 1 million to every first bank in the region to accept stablecoins. However, analyst firm Fitch Ratings recently announced that stablecoin issuers would compete with traditional depository institutions.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
