Unstoppable Domains CEO, Matthew Gould, has predicted in an interview with Business Insider that by 2025 the Stablecoin market capitalization could hit $1trillion, a 10 times increase from its current $115 billion.
Gould explained that his prediction could come quicker than the year said, adding that the growing acceptance of DeFi apps will help drive its growth. According to him, “the more people with stablecoins in the pocket, the more people who can participate in decentralized finance.”
Despite his optimism about Stablecoin’s future, he identified the financial risks associated with its rapid growth, such as worries over its volatility and its one-to-one backing with pegged assets.
Speaking on regulation, Gould says greater regulatory clarity and competition amongst stablecoins will eliminate the risk associated with stablecoins. He commended the Circle-backed token, USDC, approach to the building of its stablecoin.
However, Gould’s prediction did not stop on Stablecoins; he also predicted BTC would not retest its all-time high of $64k for the next year, based on historical facts. According to him, “I think we’re going to continue to be range-bound for the rest of this year. This is based on experience; typically, when the market crashes 50% or more, it takes a year or two of consolidation.”
This remark is coming when regulators are closely watching USDC and USDT over the rapid growth of the stablecoin market. Financial authorities are working towards a proper regulatory framework for the burgeoning Stablecoin industry.