Solana Leads in Blockchain Payments, Faces Limitations, as Stablecoin Market Expands: Bernstein [Video]

The stablecoin market is growing and these cryptocurrencies are being adopted for cross-border settlements with payments firms, fintech companies and consumer platforms among the early users, broker Bernstein said in a research report on Tuesday.

Bernstein notes that stablecoin supply currently stands at $150 billion, with tether (USDT) and USD Coin (USDC) dominating the market with shares of 75% and 22% respectively. A stablecoin is a type of cryptocurrency that’s usually pegged to the U.S. dollar, though some other currencies and assets such as gold are also used.

“Stablecoin value settled on the blockchain indicates strong adoption of digital dollar with the crypto trading ecosystem as well as a cross-border payments currency,” analysts Gautam Chhugani and Mahika Sapra wrote, noting that “Q1 2024 annualized value transferred stands at $6.8 trillion, equivalent to 2022 high of ~$7 trillion.”

The authors said there have been signs of stablecoin adoption by payments firms such …