Jeremy Allaire, CEO of Circle, a leading stablecoin issuer, has made a bold prediction that stablecoins will make up 10% of the global money supply within the next decade. This forecast is based on several key factors that Allaire believes will drive the exponential growth of stablecoins in the coming years.

According to Allaire, the increasing adoption of blockchain technology and stablecoins by major payment companies will significantly boost the use of stablecoins. The benefits of public blockchains and stablecoins, including financial inclusion, reduced money transfer costs, and facilitated cross-border trade, will lead to widespread adoption and acceptance. This technology has the potential to reach billions of dollars in market size and provide financial access to the unbanked.

Currently, the stablecoin market size is $162 billion, a mere 0.2% of the $80 trillion money market. To reach Allaire's predicted 10% market share by 2034, the stablecoin market needs to grow at an annual compound rate of 47.7%. This significant growth rate highlights the transformative potential of stablecoins in the global financial world. USD Coin (USDC), a US dollar stablecoin issued by Circle, is the second-largest stablecoin with a market value of $32.8 billion, indicating its importance and future growth potential.

Allaire's optimism extends beyond stablecoins to the broader cryptocurrency market, predicting that cryptocurrencies will reach billions of users and millions of applications within the next decade. This high adoption could enable more trade and financial transactions through smart contracts on public blockchain infrastructure. While specific details were not provided, Allaire believes that some on-chain data providers may outperform traditional multinational companies in the future.

In conclusion, Jeremy Allaire's prediction highlights the potential of stablecoins to revolutionize the global money supply. As the benefits of blockchain technology and stablecoins become more apparent, their adoption is expected to grow exponentially. With the stablecoin market poised for significant growth, it will be exciting to see how this prediction unfolds in the coming years.