JPMorgan: Stablecoin Supply Growth Not Eroding Cryptocurrency Market Share

A new research report from JP Morgan states that the supply of stablecoins has been growing, but this expansion does not mean that it is taking over the cryptocurrency market share, rather it is a sign of an increase in the total market capitalization of digital assets. The report also noted that the reasons for the growth of the stablecoin market include the sharp rise in the price of bitcoin and ethereum, which has led to an increase in the market capitalization of the crypto market, thus driving the growth in the supply of stablecoins. In addition, since the launch of spot bitcoin exchange-traded funds (ETFs) in the U.S. in January this year, investors are increasingly using stablecoins to access the crypto market, which has also boosted demand.