Stablecoin adoption is expected to continue its rapid growth in the coming years, with a projected $719 trillion in real economic volume by 2035. According to Chainalysis, this growth will be driven by a number of factors, including a $100 trillion wealth transfer from Baby Boomers to Millennials and Gen Z.
The report notes that this demographic shift is expected to begin around 2028, as younger generations become increasingly active in the financial markets. With nearly half of these generations already holding or having held cryptocurrency, it's likely that they will continue to play a major role in driving adoption and usage of stablecoins.
In addition to the wealth transfer, the report also highlights the potential for stablecoin networks to match Visa and Mastercard's off-chain transaction volumes between 2031 and 2039. This is due in part to the structural advantages of stablecoins, which include fast settlement times, continuous operation, and reduced reconciliation costs.
The growth of stablecoin adoption is also driving change within traditional financial institutions, with many beginning to build on-chain infrastructure to serve their crypto-native clients. With the window for building these capabilities narrowing quickly, institutions that fail to adapt may find themselves at a disadvantage.