Standard Chartered Says Rising Stablecoin Velocity Could Reduce Future Demand

Standard Chartered analysts say faster stablecoin turnover could limit the need for new token supply even as transaction volumes continue to rise. In a Tuesday report, the bank noted that stablecoin velocity a measure of how frequently tokens are used relative to total supply has doubled over the past two years.

Geoff Kendrick, head of crypto research at Standard Chartered, explained that if velocity increases, rising transaction volumes may not require equivalent growth in stablecoin supply. Despite this shift, the bank still forecasts the global stablecoin market could reach $2 trillion by late 2028.

USDC and USDT Show Different Market Roles

The surge in velocity, averaging at least six turnovers per month, has been largely driven by Circle’s USDC, particularly across networks such as Solana and Base. Analysts linked this growth to expanding traditional finance activity and early artificial intelligence payment systems.

In contrast, Tether’s USDT has maintained lower velocity, reflecting its continued role in emerging market savings, highlighting different use-case strengths between the two leading stablecoins.

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