JPMorgan Chase (JPM) is forecasting that the global stablecoin market will reach $500 billion by 2028.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
The outlook from JPMorgan is at the low end of current forecasts, with many cryptocurrency bulls calling for a $1 trillion to $2 trillion stablecoin market within the same timeframe. In a note to clients, JPMorgan’s lead crypto analyst Nikolaos Panigirtzoglou outlined a more modest view of the trajectory for stablecoins.
Panigirtzoglou argues that crypto-native demand, not payment adoption, remains the primary driver of stablecoin usage around the world. “We find forecasts for an exponential expansion of the stablecoin universe rom $250 billion currently to $1 trillion-$2 trillion over the coming years as far too optimistic,” wrote the analyst.
Market Size
Stablecoins are cryptocurrencies whose value is pegged to another asset, such as the U.S. dollar or price of gold. Currently, stablecoins play a major role in crypto markets, providing a payment infrastructure and facilitating international money transfers.
According to JPMorgan, roughly 88% of stablecoin demand today comes from crypto-native activity, including trading, decentralized finance (DeFi), collateral, and idle funds held by crypto firms, with payments accounting for only 6%.
Even under the most generous assumptions, the growth of stablecoin use in payments would only marginally increase the overall market’s size, argues Panigirtzoglou. JPMorgan also dismissed the likelihood of a large-scale shift from traditional bank deposits or money market funds to stablecoins, citing a lack of yield. JPM stock is up 25% this year.
Is JPM Stock a Buy?
The stock of JPMorgan Chase has a consensus Moderate Buy rating among 20 Wall Street analysts. That rating is based on 14 Buy, five Hold, and one Sell recommendations issued in the last three months. The average JPM price target of $285.05 implies 3.30% downside from current levels.
