JPMorgan Warns Stablecoin Growth Is Slowing, Predicts $500B Cap by 2028

JPMorgan's latest research casts doubt on the hyperbolic growth projections for stablecoins, forecasting a market cap of $500 billion by 2028—far below the $1 trillion to $2 trillion estimates circulating in the crypto industry. The bank's analysis, led by strategist Nikolaos Panigirtzoglou, reveals that 88% of stablecoin demand stems from within the crypto ecosystem, primarily for trading, DeFi, and treasury management. Only 6% of usage is tied to payments, undermining claims of imminent mass adoption.

The report dismisses the notion that stablecoins will soon displace traditional bank deposits or money market accounts. "We find forecasts for an exponential expansion of the stablecoin universe as far too optimistic," the analysts conclude, highlighting the gap between speculative HYPE and on-chain reality.