Growth of stablecoins market cap to $1 trillion may trigger next crypto rally
Stablecoin market could hit $1 trillion by 2025, says CoinFund’s Pakman.
The global stablecoin market may be on the verge of explosive growth, potentially quadrupling to $1 trillion by the end of 2025, according to CoinFund managing partner David Pakman.
Pakman identified the rising adoption of stablecoins as a “meaningfully significant” catalyst for broader crypto market expansion, reports Cointelegraph.
Stablecoin Boom to Drive Onchain Activity
“We’re in a stablecoin adoption upswell that’s likely to increase dramatically this year,” Pakman said. “We could go from $225 billion stablecoins to $1 trillion just this calendar year.” While that figure remains modest compared to traditional finance markets, Pakman argued it represents a transformative shift for blockchain-based financial systems.
According to Glassnode, the aggregate supply of the five largest stablecoins reached a record $208 billion as of March 28. More recent data shows the figure surpassing $219 billion, with continued upward momentum—suggesting the crypto market is still “mid-cycle,” according to IntoTheBlock analysts.
Pakman believes this surge in capital moving onchain is what the crypto industry has long awaited: “This is the major catalyst that’s been missing for over a decade—a major movement of people’s wealth onchain that brings everyone else on.”
ETFs and DeFi Integration Could Accelerate Growth
Pakman also noted that the growing popularity of exchange-traded funds (ETFs) could further fuel decentralized finance (DeFi) if regulators allow ETF products to offer staking rewards or yield. “That unlocks really meaningful uplift in DeFi activity,” he said, highlighting the potential for increased retail and institutional involvement.
Rise in Stablecoin Payments Signals Real-World Use
Another promising trend is the increasing use of stablecoins for everyday payments. “We’re up over 22x in stablecoin volume since 2021,” Pakman noted. He added that the average size of transactions is decreasing, indicating a shift toward payment utility rather than large-scale capital transfers.
This sentiment was echoed by CryptoQuant CEO Ki Young Ju, who emphasized that stablecoins are increasingly serving roles in remittance and as stores of value—even if their expanding supply doesn’t necessarily correlate with immediate price gains for assets like Bitcoin.
Outlook
While Bitcoin and other cryptocurrencies often dominate headlines, the behind-the-scenes growth of stablecoins may be laying the foundation for the next wave of crypto adoption. If the total supply does reach $1 trillion by 2025, it could mark a defining moment in the integration of blockchain technology into global finance.
Recently we wrote, that major institutional players are quietly increasing their exposure to Bitcoin (BTC), setting the stage for a potential market-wide bull run.
