TechFlow news, September 19 — According to CoinDesk, a recent report by JPMorgan Chase indicates that the $270 billion stablecoin market may be entering a zero-sum game. The report shows that although the stablecoin market has grown significantly, its share of the total cryptocurrency market capitalization has remained below 8% since 2020.
Following the passage of U.S. stablecoin legislation, market competition has intensified. Tether plans to launch a fully compliant stablecoin, USAT, while fintech giants such as PayPal and Robinhood have also entered the space. In response, Circle is developing its own dedicated blockchain, Arc, to strengthen USDC's competitiveness.
JPMorgan analysts believe that unless the overall cryptocurrency market expands, new entrants may merely redistribute existing market share rather than drive substantial growth.
