In recent months, the velocity of stablecoins—the frequency with which they change hands—has surged. This was highlighted by Jeffrey Kendrick, head of digital asset research at Standard Chartered, as reported by The Block.
“The [metric] has increased, which contradicts our assumption of its stability,” he noted.
The turnover has doubled over the past two years, with tokens now changing hands about six times a month on average. The USDC coin from Circle has played a key role in this shift.
The bank's forecast for stablecoin supply to reach $2 trillion by 2028 is partly based on their usage frequency. An increase in this metric could reduce the need for issuance, even if transaction volumes continue to rise.
New Use Cases
Kendrick linked these changes to the evolution of use cases. Stablecoins have expanded beyond crypto trading and savings.
Fiat-pegged tokens are increasingly serving as alternatives to traditional financial infrastructure and are being used for AI-based payments.
The expert emphasized that this distinction is significant. Standard Chartered believes that the “unstable velocity” reflects new, additional demand rather than a general shift in how all stablecoins are utilized.
In emerging markets, savings—where USDT from Tether dominates—have not shown similar dynamics.
Forecast Remains Intact
Despite the shift, the bank maintains its overall thesis: analysts expect stablecoin supply to reach $2 trillion by 2028. As of this writing, the figure stands at $315.5 billion.
Source: DefiLlama.This growth in capitalization is expected to create additional demand for U.S. Treasury bills amounting to around $1 trillion, according to Standard Chartered.
These expectations are bolstered by other optimistic statements from bank representatives. Previously, they asserted that stablecoins would transform global liquidity, trigger a $500 billion outflow from bank deposits, and become a key catalyst for cryptocurrency adoption.
However, a new factor has emerged. The velocity of stablecoins may prove to be as important as the supply volume.
“If the metric remains constant, the growth in transactions will create demand for more stablecoins. If it increases, that won’t happen, all else being equal,” Kendrick concluded.
In March, former hedge fund manager Stanley Druckenmiller called stablecoins the future of global payments.