- Stablecoins processed over six trillion-dollar transactions in 2022.
- The figure outpaced traditional payment companies.
- Bloomberg projects a 3596% growth in stablecoin with PayPal stablecoin adoption.
Recently, Jamie Coutts, a crypto market analyst at Bloomberg Intelligence, spotlighted the place of stablecoin in processing trillion-dollar transactions.
According to Coutts, stablecoins made significant strides in the digital money evolution. The analyst noted that the crypto coins surpassed established players like Mastercard and PayPal.
In particular, the analyst revealed that stablecoins on various Layer-1 crypto networks transacted $6.87 trillion in 2022. According to him, the figure outpaced the stride of traditional payment companies.
Furthermore, Coutts pointed out that even Bitcoin (BTC) had outperformed Visa regarding transaction volumes during the same period. Meanwhile, he noted that the current year has brought challenges. The hurdles saw a sharp 80% drop in stablecoin volumes due to stringent US regulations and a bearish market sentiment.
Despite these setbacks, Coutts anticipated a surge in stablecoin issuance. He believes the growth will be driven by PayPal’s decision to introduce its stablecoin, PYUSD. This move, he noted, positions PayPal ahead of its competitors, allowing it to tap into the growth potential of open crypto networks.
According to the analyst’s chart, PayPal can facilitate a 3596% growth in stablecoin adoption. The chart indicated that a mere 1% PYUSD adoption from PayPal’s active users could achieve the projected figure.
However, Coutts underlined that while the scenario appeared positive, it was unrealistic due to network constraints and transaction costs.
Furthermore, he mentioned that Visa and Mastercard invested in and integrated with open networks. Ultimately, the Bloomberg analyst hinted at future announcements from other payment companies in the coming months.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
