The publication writes that the capitalization of stablecoins peaked last spring, when the figure was $181 billion. After the collapse of the Terra ecosystem, capitalization collapsed to $154 billion and, after a period of stagnation, continued to decline. At the beginning of August, the figure was only $122 billion.
However, analysts believe the trend could change. The recent launch of payment company PayPal’s own stablecoin will help facilitate this. In addition, regulatory attitudes towards stable cryptocurrencies are also changing.
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“If PayPal can prove the benefits of stablecoins in real-world use, it will not only demonstrate their utility, but will also force traditional financial institutions to adopt stablecoins. If PayPal really gets serious about using stable cryptocurrencies, this could be one of the strongest catalysts for their adoption,” said Shipyard Software CEO Mark Lurie.
Earlier, JPMorgan analyst Nikolaos Panigirtzoglou said that the launch of the PayPal payment service’s PYUSD stablecoin will help attract more users to the Etherium network.