Stablecoin market to reach $ 1 trillion by 2025: unstoppable

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Matthew Gould became one of the first bitcoin bulls in 2013 and has since started the leading crypto company, Unstoppable Domains. Gould explains why the stable coin market will reach $ 1,000 billion by 2025 despite regulatory concerns. He also shares his outlook on how the crypto markets will trade for the remainder of this year.

Decentralized finance is all about removing barriers by removing middlemen and allowing direct transactions between two parties, often using cryptocurrencies running on blockchain technology.

Cryptocurrencies are everywhere now, but they’re not as easy to use as some of their advocates suggest. When most users send or receive digital tokens, they are often faced with the daunting task of managing a long hexadecimal crypto wallet address that is virtually indecipherable.

“Imagine you were selling a product, then the first thing people felt when they used your product was fear and that’s basically what it was for cryptocurrency,” Matthew Gould told Insider. , CEO and Founder of Unstoppable Domains.

That’s why Gould, a bitcoin bull since 2013, launched Unstoppable Domains in 2018, so he can improve the user experience in managing crypto wallet addresses. Individuals can buy and own their own crypto domain, which is easy to read and manage.

This user-friendly concept has caught the attention of large venture capitalists, such as Draper Associates and Boost VC.

Gould took another step forward in improving the crypto user experience this week through a partnership with Circle, which issues the USDC stablecoin. At $ 25 billion, USDC is the second largest stablecoin by market value, behind Tether, which has a market cap of $ 62 billion, according to Coinmarketcap.com.

Stablecoins are cryptocurrencies tied to fiat currency on a 1: 1 basis and are, in theory, backed by reserves, such as short-term government bonds and the currency itself.

Adding simple domain names helps Circle work towards wider adoption of stablecoins as another barrier is removed from the fear and risk of accessing crypto.

Stable growth

The stablecoins market has thrived over the past two years, increasing in value to around $ 100 billion now, from less than $ 1 billion in 2019.

As for the growth rate, Gould expects the private stablecoins market to reach $ 1 trillion by 2025, which would be 10 times the growth year over year, for the next four years.

Matthew Gould, CEO and Founder of Unstoppable Domains Unstoppable Domains

“We can even do it faster than that,” he said.

Part of the driving force behind this will be the continued resumption of decentralized financial applications.

“The more people there are with stablecoins in their pockets, the more people there are who can participate in decentralized finance,” Gould said.

On the other hand, the rapid growth of stablecoins has brought financial risk. Top stablecoin Tether has yet to produce an independent audit, for example. But Gould said it goes with the territory.

“Anytime you have that kind of growth, you’re going to be at risk,” he said.

But with increased competition in the market, as well as greater regulatory clarity, that risk will diminish, as products become safer for consumers, he said.

“Groups like Circle with their USDC have taken the most conservative and secure approach to building their stablecoins,” Gould said. “And they’ve been very actively engaged in the United States to make sure they’re compliant.”

Gould is primarily concerned with the development of algorithmic stablecoins, such as IRON Finance’s stablecoin which went to zero. These tokens have a completely different risk profile and shouldn’t be able to advertise in this way, he added.

“You shouldn’t be able to call yourself a $ 1 coin if you don’t have $ 1 in the bank,” Gould said. “It’s an opinion, we’ll see what other people think. I’m glad people are paying attention, I think it’s important that people are paying attention.”

Regulators shouldn’t be too overbearing, however, as too many rules could stifle rapid innovation, which has so far been positive for consumers, Gould said. This is part of the reason why he believes there will always be rapid growth in privately issued stablecoins, despite the government’s growing focus on central bank digital currencies (CBDCs), given the slower pace at which public institutions evolve.

Crypto Market Outlook

The volatility of stablecoins and crypto assets has caught the attention of global regulators as major bitcoin and ether crypto assets become more mainstream.

The new chairman of the SEC, Gary Gensler, spoke this week about the regulation of cryptocurrency markets, which he called “the Wild West.”

Bitcoin (BTC) fell more than 50%, from a high of around $ 64,000 in mid-April to a low of $ 29,000 in July. It is now trading around $ 38,000.

Gould doesn’t expect a return to the highs in April, at least not this year.

“I think we’re going to continue to be limited in lineup for the rest of this year,” Gould said.

“I expect the crypto market to continue consolidating more generally. This is based on past experience, usually when the market crashes 50% or more it takes a year or two. consolidation, ”he said.

Indeed, when bitcoin fell 50% from a record high of $ 19,891 in December 2017 to around $ 9,880 in February 2018, it took another two years before it saw another rise. After peaking at around $ 14,000 in April 2019, it gradually fell by around 50% to reach lows below $ 4,000 in March 2020, which marked the deepest part of the coronavirus market crisis.

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