While Bitcoin may grab the crypto headlines, the real growth narrative over the next five years will be found in stablecoins, the digital currencies that are revolutionizing global monetary transactions.
Indeed, the original cryptocurrency is swiftly evolving into an exemplary non-sovereign global store of value, boasting a market cap of $2.3 trillion. However, stablecoins fulfill a transactional role, significantly outpacing Bitcoin in daily transaction volumes. On October 6, Bitcoin’s 24-hour transaction volume was $63.8 billion, whereas stablecoins reached $146 billion — over twice that amount.
The reason is straightforward. Stablecoins are not merely assets for investment; they possess genuine utility in the real world. They are driving much more than just Decentralized Finance (DeFi). Their applications as a global currency for payments and cross-border transactions are expanding. Additionally, as artificial intelligence becomes increasingly integrated into daily life and commerce, stablecoins could serve as the currency for machine-to-machine interactions by AI agents.
Bitcoin is broadening its use cases through wrapped BTC and emerging Bitcoin Layer 2 networks that aim to incorporate it into DeFi and facilitate the creation of decentralized applications (dApps) on top of it — but essentially, Bitcoin will continue to be regarded as a store of value. Other blockchains excel at providing a decentralized, smart-contract-enabled platform, ideal for shaping the future of finance. Stablecoins, in contrast, are specifically designed to provide a superior solution for global payments compared to the traditional, centralized systems (like SWIFT, ACH, and credit card payments). As mainstream adoption rises, stablecoins will likely dominate everyday payment usage.
Chart: Chainalysis 2025 Global Adoption Index
Take Venezuela as a case in point, where USDT has emerged as the cornerstone of daily economic activities. Amid soaring inflation — with the IMF estimating it at 180% — and a limited supply of physical dollars, this may represent an extreme situation, yet it exemplifies how effortlessly stablecoins can be used to purchase groceries or a haircut.
Stablecoins are swiftly gaining ground because they fulfill a need that Bitcoin has struggled with on a large scale — enabling instant, peer-to-peer transactions. Bitcoin’s lengthy ten-minute block times, network fees, and volatility render it impractical for everyday use, whereas stablecoins process transactions in seconds, cost only pennies (in some cases even less than a cent), and maintain value stability.
It’s all about utility
The triumph of stablecoins hinges on their functional utility rather than on speculation — they are increasingly becoming the most-utilized form of digital currency worldwide. Stablecoins are swiftly transforming the global remittance industry, a sector valued at approximately $780 billion per year, by providing quicker, more affordable cross-border transactions.
They are also beginning to disrupt the payments landscape, as major companies like Stripe, Visa, PayPal, and others integrate stablecoin transactions that are faster, cheaper, available 24/7, and accessible globally. As stablecoins are adopted by fintech companies and payment processors, most users will remain unaware that blockchain technology underpins their transactions.
The current U.S. administration has clearly indicated that it views stablecoins as a financial innovation essential for maintaining the dollar’s status as the world’s reserve currency. This commitment is evident in the enactment of the GENIUS Act, marking the first step in this endeavor.
While agencies work on establishing the regulatory parameters for stablecoins under the GENIUS Act, the specifics will be crucial; defining reserve assets, determining which entities can issue dollar-backed tokens, outlining user redemption rights, and deciding whether these digital dollars can move freely across public and private blockchains. These decisions will influence whether U.S.-regulated stablecoins can compete globally or become hindered by competing regulations. This administration must facilitate the dominance of dollar-backed stablecoins on the international stage to avoid losing influence over the future of money.
In the short term, I believe that for all the aforementioned reasons, the total minted value of stablecoins could surpass Bitcoin’s market capitalization.
