CoinFund’s David Pakman Forecasts $1 Trillion Stablecoin Market by 2025
The global stablecoin market could skyrocket to $1 trillion by the end of 2025, driving major growth across the broader cryptocurrency space, predicts David Pakman, managing partner at CoinFund. Pakman attributes this potential surge to increasing on-chain capital flow and rising demand for stablecoins as a tool for everyday transactions.
Pakman’s forecast points to a rapid transformation in the stablecoin sector, where major players are adjusting their strategies in anticipation of significant growth. He believes the stablecoin market could leap from around $225 billion to $1 trillion within the next year alone. This growth, while still modest compared to traditional financial markets, would be a significant milestone for blockchain-based finance.
“We’re seeing a stablecoin adoption wave that’s likely to grow exponentially this year,” Pakman said. “This could be one of the biggest drivers for broader crypto adoption and DeFi expansion.”
A trillion-dollar stablecoin market would serve as a crucial bridge between traditional finance and decentralized ecosystems, Pakman explains, unlocking greater liquidity, utility, and yield opportunities in decentralized finance (DeFi).
The stablecoin sector is already showing signs of rapid expansion. As of late March 2025, the supply of the five largest stablecoins surpassed $219 billion, according to blockchain analytics firm Glassnode. This trend is expected to continue, with stablecoins increasingly driving fresh liquidity into the cryptocurrency ecosystem.
Pakman also highlighted how stablecoins could gain even more influence if regulations evolve to allow new features, such as yield-bearing mechanisms. For example, if exchange-traded funds (ETFs) in major markets are allowed to offer staking rewards, it could accelerate DeFi adoption and further fuel mainstream interest in stablecoins.
“ETFs offering staking rewards would unlock significant growth in DeFi activity,” Pakman added.
Beyond their role in trading, stablecoins are becoming increasingly popular for everyday payments and remittances, especially in regions with limited access to traditional banking. Pakman noted that stablecoin transaction volumes have increased more than 22 times since 2021, and the average transaction size has decreased, signaling growing adoption for smaller, everyday payments.
This shift is evident in emerging markets, where stablecoins are becoming an essential tool for financial inclusion. CryptoQuant CEO Ki Young Ju pointed out that stablecoins are playing an important role in remittance services, but he cautioned that their growth alone may not drive Bitcoin’s price up without additional market catalysts.
While some analysts believe the stablecoin market is still in its “mid-cycle,” rather than at the peak of a crypto bull market, the increasing supply of stablecoins is seen as a sign that capital is ready to flow into Bitcoin, Ethereum, and other digital assets. As stablecoins become an integral part of payment processing, lending, and cross-border transactions, the digital finance landscape may be on the brink of a major transformation—one that could serve billions globally.
Featured image from: coinpaper.com