Stablecoin market: increased likelihood of a zero-sum game

Son Min

Summary

JPMorgan analyzed that if the virtual asset industry does not expand, a zero-sum game could occur in the stablecoin market.
It said major firms such as Tether and Hyperliquid are preparing to launch new stablecoins, and fintech companies are actively joining the competition.
It reported that the current stablecoin market size is about 278 billion dollars, and its share within total virtual asset market capitalization has been stagnant since 2020.

If the virtual asset (cryptocurrency) industry does not expand significantly, an analysis says a zero-sum game could occur in the stablecoin market. A zero-sum game means that one person's gain necessarily results in another person's loss.

On the 19th (local time), The Block reported that JPMorgan said in a report, "With U.S. stablecoin legislation about to take effect, new entrants are surging," and "If the virtual asset industry does not expand, a zero-sum game among issuers could begin."

According to JPMorgan, Tether (USDT) plans to launch a regulatory-compliant stablecoin 'USAT', and Hyperliquid (HYPE) is also preparing to issue 'USDH'. Fintech companies such as Robinhood and Revolut have also joined the competition by developing their own stablecoins.

Meanwhile, the current stablecoin market size is about 278 billion dollars. Its share of total virtual asset market capitalization has remained below an average of 8% since 2020, continuing in a stagnation phase.

HYPE

USDT