Bitcoin News and Finance
Crypto Analyst Predicts Stablecoin Adoption Boom Even in Face of Hostile Regulation Skip to main content

Crypto Analyst Predicts Stablecoin Adoption Boom Even in Face of Hostile Regulation

Crypto Analyst Predicts Stablecoin Adoption Boom Even in the Face of Hostile Regulation

Jamie Coutts, an analyst from Bloomberg Intelligence, has predicted that stablecoin adoption will grow significantly once the issue of hostile regulations in the U.S. is put aside, noting “adoption under the hood is exploding.” Coutts believes that stablecoin usage may overtake bitcoin usage as more companies like Paypal integrate such assets in their payment structures.

Analyst Says Stablecoin Adoption Set to Grow

While the stablecoin market has been hammered recently due to the lack of clear regulations in the U.S., the adoption of these tools is set to boom enormously in the future. At least, this is the opinion of Jaime Coutts, a Bloomberg Intelligence analyst, who believes that even in the face of “U.S. boomer” regulations, these payment methods are likely to be adopted by companies like Paypal and credit giants like Visa and Mastercard.

In his analysis, Coutts acknowledges that the growth of the stablecoin market was significant during 2022, with total payments of stablecoins in various L1 blockchains reaching almost $6.9 trillion, surpassing the numbers of companies such as Paypal and Mastercard. However, year to date, this number has plummeted by 80%.

Coutts believes that stablecoins are ready to “explode” as more and more institutions try to jump onto the stablecoin bandwagon to follow companies like Paypal, which leapfrogged its competitors with the recent issuance of PYUSD, its in-house stablecoin. Coutts remarked that Visa and Mastercard have invested in integrating their services in open networks.

Coutts stated:

Payments companies that ignore the stablecoin-adoption trend are missing the speed at which scaling improvement is occurring.

Mainstream Use Limited by Transaction Count

However, Coutts says the growth of the stablecoin market will be limited by the capacity of blockchain to support this growth, as open networks will fail to provide the scalability that rails like Visa or Mastercard offer, processing 97% more transactions even with the added hassle of censorship and higher friction for their users.

Coutts pointed out that Ethereum and its set of L2 expansion layers — Arbitrum, Optimism, and Base — are set to be the carriers of this growth, as future updates will make L2 transactions cheaper with the adoption of proto-danksharding, also known as EIP-4844.

Finally, Coutts explained that stablecoin adoption could surpass Bitcoin adoption depending on market factors. He declared:

It’s possible stablecoin users will even overtake bitcoin in the next 3-5 years as network effects of payment and merchant-company integration (e.g. Paypal, Visa, Shopify) …and advances in scaling lay the infrastructure needed for mainstream adoption.

What do you think about stablecoins and their possible adoption boom? Tell us in the comments section below.

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r
Post a Comment
Read more
Blogarama - Blog Directory