Only one cryptocurrency set to lead stablecoin hype, Electric Capital says

Despite widespread talk about “de-dollarization,” the global thirst for U.S. dollars is far from disappearing. In fact, it’s reaching new heights. Behind the scenes, a powerful shift is underway: billions of people and countless businesses worldwide are finding fresh ways to access dollars, not through banks or traditional finance, but via stablecoins.

As Electric Capital, a crypto investment firm and research organization, noted in a recent report, the shift is creating the biggest expansion of the dollar’s network in decades, and one cryptocurrency is positioned to benefit the most.

Since 2020, the stablecoin market has grown nearly 60-fold to over $200 billion, fueled largely by demand from emerging markets where traditional banking remains limited or unstable.

Electric Capital points out that billions of people around the world face currency risks. Political instability, poor monetary policies, and high inflation — sometimes above 6% annually — threaten the value of local currencies. In such places, holding dollars means more financial security.

“Over 4 billion people face significant currency risks due to political instability, poor monetary policy, and structural inflation. For these populations, holding dollars means financial security.”

Electric Capital

Businesses also need dollars to operate. The U.S. dollar dominates global trade, involved in about 88% of all foreign exchange transactions. For many small and medium-sized enterprises and freelancers, especially in emerging economies, digital dollars help avoid currency mismatches and simplify cross-border payments.

Most importantly, stablecoins allow anyone with internet access to hold dollars: no bank account or government permission needed. This global accessibility is unprecedented.