While the market scrutinizes ETFs and Bitcoin monopolizes the titles, another dynamic, less noisy but more structuring, is at work: the rise of stablecoins. Backed by Fiat currencies, these long assets become the framework of new digital finance. And at the heart of this transformation, an actor is essential: Ethereum. The network is about to become the central infrastructure of the token monetary system.
In short
- JPMorgan believes that Ethereum is particularly well positioned to take advantage of the growth of Stablecoins.
- 51 % of stablecoins in circulation, or $ 138 billion, are currently issued on the Ethereum network.
- The Stablecoins market has recorded continuous growth for eight months, exceeding that of the rest of the crypto sector.
- JPMorgan anticipates a stable -co -for -$ 500 billion market by 2028, or even $ 750 billion according to Standard Charterd.
Ethereum, the backbone of the Stablecoins market
While Bitcoin loses ground in front of the second market crypto, in an analysis published Thursday, JPMorgan experts affirm “That Ethereum emerges as a direct means of exposure to the expected meteoric growth of stablecoins”because of its central role in the accommodation of these assets.
The observation is unequivocal: 51 % of the stablecoins in circulation are currently issued on Ethereum, a total value of $ 138 billion, according to Defillama data. Even when the Stablecoins are created on second-layer networks (Layer 2), the underlying structure remains largely backed by Ethereum, insist analysts.
This predominance is confirmed in a context of high growth in the market. The Stablecoins sector recorded in July its eighth consecutive month of increase, with annual growth faster than that of the entire Crypto market, according to JPMorgan. The bank reveals several key factors:
- An accelerated adoption of stablecoins, especially in payments, exchanges and inter-chain transfers;
- A massive concentration on Ethereum, both in layer 1 and through Layer 2 as a base or Starknet;
- An ethn burn mechanism activated by the use of the network, which reduces the supply in circulation and can support the price;
- A growing separation between the market dynamics of stablecoins and those of other crypto assets, marking the entry of the sector into a phase of economic maturity.
JPMorgan concludes that this growth “Perpetuates the theme of the divergence of stablecoins compared to the crypto ecosystem as a whole”. In other words, Stablecoins now follow their own development logic, of which Ethereum remains the main technical and economic infrastructure.
The Genius Act, trigger for a massive institutional interest
If Ethereum's domination in terms of stablecoins was already structural, recent regulatory events have accelerator to this dynamic.
JPMorgan points out in particular the promulgation of the Genius Act, an American regulatory framework, which sets the legal foundations for the issue and circulation of stablecoins in the United States. This law would have “Catalysts an increased activity in July in the DEFI, the NFT and the cash markets”according to the bank's note.
Furthermore, the boom in stablecoins go beyond purely crypto projects, because it is now fired by Wall Street's ambitions.
Concrete examples support this transition. Circle, transmitter of the USDC, entered the stock market, while Robinhood launched its own Layer 2 based on Ethereum. These initiatives, combined with new partnerships, such as that between Metamask and Stripe, show that web2 and traditional finance players are sailing more and more actively in Ethereum ecosystem.
This transition is not done without technical impact. Layer 2 certainly allow cost savings, but also lead to a drop in burn splendor, observed at historically low levels in April. Such a variable is to be monitored in the rarity equation which supports the price of Ether.
The projection of JPMorgan, which assessment The Stablecoins market at $ 500 billion by 2028, is deemed cautious in the face of the 750 billion dollars anticipated from 2026 by Standard Charted. This disparity highlights uncertainty, but also the enormous growth potential of the sector, provided that the infrastructure follows.
Ethereum could become the universal base of programmable finance, but this concentration also poses challenges: scalability, security, neutrality in the face of private interests. In all cases, the alliance of Stablecoins and Ethereum goes beyond a technical bet: it is now a strategic trajectory for the future of tokenized finance.
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