Blockchain analytics firm Chainalysis pointed out that the adjusted stablecoin volume is expected to reach $719 trillion by the year 2035 via so-called organic growth alone. Chainalysis also mentioned that when we factor in various macro catalysts, then that figure may approach $1.5 quadrillion. The blockchain analytics solution provider also stated that anywhere between 2028 and 2048, an estimated $100 trillion in wealth will most likely move from Boomers to Millennials and Gen Z (generations that are considered far more likely to use crypto as a “default” financial tool).
The report from Chainalysis added that stablecoin payment volumes are on pace to match giant payment processors Visa and Mastercard’s off-chain transaction volumes.
This may actually happen somewhere between 2031 and 2039, putting a lot of competitive pressure on traditional payment channels. While this may be a notable stat, it can be somewhat like comparing two fundamentally different transaction channels.
That’s because stablecoins are used heavily for trading and speculative moves in crypto markets. Meanwhile, Visa and Mastercard transactions are focused on payments. Nevertheless, these metrics and growth projections do clearly illustrate the popularity and steady growth of stablecoins in global finance.
The research report from Chainalysis added that deals such as Fintech Stripe’s acquisition of Bridge and Mastercard’s partnership with BVNK indciate that stablecoins are becoming vital payments infrastructure.
Chainalysis now estimate that POS saturation by itself might potentially add $232 trillion in yearly stablecoin volumes by the year 2035.
The blockchain analytics firm pointed out that just as consumers learned to evaluate credit cards on fees and rewards, they’ll start weighing crypto rails against traditional channels on the same terms.
And these terms may actually include transaction costs, settlement speed, as well as various cashback incentives.
Chainalysis concluded that stablecoin-linked cards will probably compete directly with traditional payment infrastructure. For Fintech industry incumbents such as Visa and Mastercard, this isn’t a actually distant threat. It’s turning into a countdown based on current developments.