$1T stablecoin supply could drive next crypto rally — CoinFund’s Pakman

The global stablecoin supply could surge to $1 trillion by the end of 2025, potentially becoming a key catalyst for broader cryptocurrency market growth, according to CoinFund managing partner David Pakman.Were in a stablecoin adoption upswell thats likely to increase dramatically this year, Pakman said during Cointelegraphs Chainreaction live show on X on March 27. We could go from $225 billion stablecoins to $1 trillion just this calendar year. He noted that such growth, while modest compared to global financial markets, would represent a meaningfully significant shift for blockchain-based finance.Pakman also suggested that the rise in capital flowing onchain, combined with growing interest in exchange-traded funds (ETFs), could further support decentralized finance (DeFi) activity:If we have a moment this year where ETFs are permitted to provide staking rewards or yield to holders, that unlocks really meaningful uplift in DeFi activity, broadly defined.https://t.co/v9lOnk00QY Cointelegraph (@Cointelegraph) March 27, 2025src="https://platform.twitter.com/widgets.js" charset="utf-8">Related: BlackRock Bitcoin ETP key for EU adoption despite low inflow expectationsThe aggregate stablecoin supply stood at an all-time high of above $208 billion across the five largest stablecoins on March 28, according to Glassnode data.Stablecoins, aggregate supplies. Source: GlassnodeThis is the major catalyst thats been missing for over a decade: a major movement of peoples wealth onchain that brings everyone else on, added Pakman.The growing stablecoin supply recently surpassed $219 billion and continues to rise, suggesting that the market is likely still mid-cycle as opposed to the top of the bull run, according to IntoTheBlock analysts.Related: Most EU banks fail to meet rising crypto investor demand SurveyStablecoin payment adoption on the riseStablecoins use for daily payments is on the rise, illustrating the efficacy of blockchain-based transactions.Were up over 22x in stablecoin volume since 2021, Pakman said, adding:Weve seen a significant decrease in the size of each stablecoin transaction, which points to the fact that they are being used more as payments and less for large transfers.BTC-to-stablecoin ratio. Source: Ki Young JuThat aligns with recent comments from CryptoQuant founder and CEO Ki Young Ju, who said stablecoins are increasingly being used for remittance payments and as a store of value. However, Ju said stablecoin supply wont pump Bitcoins (BTC) price without additional catalysts.loading="lazy">Magazine: Bitcoin $500K prediction, spot Ether ETF staking issue Thomas Fahrer, X Hall of Flame