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Standard Chartered says faster stablecoin turnover could curb demand

The Cointelegraph β€‹

Cryptocoins News / The Cointelegraph β€‹ 226 Views

Standard Chartered says faster stablecoin turnover could curb demand

Stablecoin turnover has doubled in the past two years as AI payments and traditional finance use cases grow, though Standard Chartered still sees the market reaching $2 trillion.

Standard Chartered analysts say rising stablecoin velocity could reduce the need for new token supply even as transaction volumes climb.

Stablecoin velocity has doubled over the past two years amid new payment use cases and rising traditional finance (TradFi) activity, Standard Chartered said in a Tuesday report seen by Cointelegraph.

Velocity refers to how often stablecoins are used relative to the amount outstanding, meaning faster turnover can support more transaction volume without requiring the supply to grow at the same pace.

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