"Technologies tend to have a natural ceiling built into their utility and popularity. Once they've solved all the problems they can solve, their growth is effectively capped. As soon as all potato fans own a potato peeler, the peeler market's growth potential is largely tapped out. Indeed, the big question around AI at the moment is how many problems it will be able to solve. The market could already be overblown, or it could be practically limitless."
"What about stablecoins? They've grown from practically nothing at the turn of the decade to a market cap in the mid-12 digits and monthly transaction volumes in excess of $1 trillion. Citigroup expects the aggregate stablecoin market cap to hit around $2 trillion by the end of the decade. If we're talking trillions, it sounds much more like AI than potato peelers."
"The first reason is price stability. Many cryptocurrencies are volatile, which makes them valuable for speculation but awkward to use as everyday currencies. The value of stablecoins is, well, stable. By definition. Price stability is their fundamental value proposition. Price stability is also arguably an advantage relative to other cryptocurrencies whose value is perpetually expected to rise. If your coins' value will double in five years, you might be reluctant to spend them now."
Stablecoins expanded from near-zero to a multi‑trillion-dollar market with monthly transaction volumes exceeding $1 trillion and forecasts around $2 trillion by decade's end. Stablecoins' principal advantages include price stability, which reduces spending reluctance compared with appreciating cryptocurrencies, and greater portability. The growth trajectory prompts inquiry into whether stablecoins have a natural ceiling and what limits their utility. The market's future size depends on how many distinct problems stablecoins can solve, whether demand will saturate, and what regulatory, technological, or economic constraints might curb further expansion. Adoption in payments, DeFi, and cross-border settlements will shape practical ceilings and determine whether stablecoins behave like broad platforms or niche utilities.
Read at Bitcoin Magazine
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