I'm more optimistic than ever about the future of crypto and stablecoins, and I'd like to share why. According to Jeremy Allaire, CEO of Circle, stablecoins could account for 10% of global economic money over the next decade or so. This bold prediction is rooted in several key factors that suggest an exponential growth in stablecoin adoption.

In a June 19 post, Allaire explained that many of the world’s largest payment companies are already using this technology and are looking to expand their usage as the benefits of public chains and stablecoins become increasingly clear. He highlighted the massive potential market size, noting that deploying digital dollars on blockchains could help bank the unbanked, reduce remittance costs, and enable seamless cross-border commerce.

Allaire pointed out that stablecoins are becoming a widely accepted form of digital money and that they will make up a growing portion of the world’s $100 trillion market for electronic money by the end of 2025. He believes that having 10% of global economic money in stablecoins and transitioning credit intermediation from fractional reserve lending to onchain credit markets is achievable over the next decade.

Currently, the $162 billion stablecoin market is just 0.2% of the $80 trillion money market. For stablecoins to reach Allaire’s 10% prediction by 2034, the market would need to grow at a compounded annual growth rate of 47.7%. This estimate doesn’t even account for the potential growth of the $80 trillion money market itself.

USDC, the United States dollar stablecoin issued by Circle, has a market cap of $32.8 billion, making it the second-largest stablecoin behind Tether, according to CoinGecko.

But my optimism extends beyond just the stablecoin market.

Cryptocurrency adoption could reach billions of users and millions of applications in the next decade, with much more commerce and finance being conducted via smart contracts on public blockchain infrastructure. Allaire even predicts that some onchain organizations could outperform traditional multinational corporations during this period.

In summary, the potential for stablecoins and cryptocurrency is immense. With the right growth and adoption, stablecoins could become a significant part of the global economic landscape, driving financial inclusivity and transforming traditional finance.