Accelerated Growth in the Stablecoin Sector
David Pakman, managing partner at crypto investment firm CoinFund, predicts that the total supply of stablecoins could reach $1 trillion by the end of 2025. This would represent more than a fourfold increase from the current level of approximately $225 billion and would have a significant impact on the entire crypto sector.
Pakman emphasized that the rapid influx of capital into blockchain platforms, as well as the growing interest in spot exchange-traded funds (ETFs), could act as key catalysts for this growth.
How Will DeFi Benefit?
One of the strongest scenarios, according to Pakman, is the integration of yield or staking functionalities into spot ETFs, which could encourage mass adoption by both retail users and institutions into decentralized finance (DeFi). This would lead to:
- Increased use of stablecoins as a means of payment
- A larger share of DeFi protocols in the overall crypto market
- Greater liquidity and stability within the ecosystem
Current Supply Data
As of March 28, the supply of the top five stablecoins reached $208 billion, already surpassing the $219 billion mark – a clear indicator of growing demand and institutional interest.
According to IntoTheBlock, this growth shows that the stablecoin market is still in the middle of its cycle, not near its peak as some analysts previously suggested.
Stablecoins as a Payment Instrument
Another notable trend Pakman highlights is the decreasing size of individual stablecoin transactions, indicating their more frequent use in everyday payments rather than large transfers between exchanges.
The volume of stablecoin payments has increased over 22 times since 2021 – a signal that these assets now play a central role in the everyday financial activity of users in the Web3 ecosystem.
Will This Increase the Price of Bitcoin?
Despite the substantial growth of stablecoins, experts like Ki Young Ju, CEO of CryptoQuant, warn that increased supply alone is not enough to drive Bitcoin’s growth. According to him, additional market catalysts are needed to push BTC’s price higher, such as:
- New regulatory easing
- Increased institutional participation
- Positive macroeconomic data
Conclusion:
The growth of stablecoins is both an indicator of the crypto sector’s health and a driver of innovation in DeFi and Web3. If David Pakman’s prediction comes true, it will mark a new era for stable cryptocurrencies—where they are not just trading instruments, but also the backbone of everyday financial operations in the digital economy.
Frequently Asked Questions
Find answers to the most common questions below.
Stablecoins are cryptocurrencies whose value is pegged to real-world assets like the US dollar or gold in order to maintain price stability.
The expected influx of capital into blockchain platforms, combined with innovations in DeFi and ETFs, is projected to push the supply upward.
Not directly – while they may improve liquidity, analysts suggest additional factors are needed to drive BTC growth.
Currently over $219 billion, with forecasts expecting it to reach $1 trillion by the end of 2025.
This article is for general informational purposes only and is not intended to be, nor should it be considered, legal or investment advice.
