JPMorgan points to Ethereum as the main beneficiary of the rise of stablecoins

• Ethereum dominates 51% of the stablecoin market
• GENIUS Act could boost Ethereum network
• Stablecoins expected to reach $500 billion by 2028

Ethereum is well-positioned to capture value from the growing adoption of stablecoins, according to analysts at JPMorgan. The institution believes that the network's ecosystem, responsible for hosting a large portion of these dollar-pegged currencies, will be one of the biggest beneficiaries of mass issuance by traditional Wall Street firms.

This movement gained momentum after the passage of the GENIUS Act, legislation that provides a regulatory framework for stablecoins in the United States. Even when tokens are launched on layer-2 solutions, analysts point out that Ethereum still benefits, directly or indirectly, from being the structural foundation of these networks.

"We believe ether is emerging as a direct way to gain exposure to the expected meteoric growth in stablecoins," the bank's analysts wrote.

Last Thursday, ETH was trading at approximately $4.540, down 3,5% in the previous 24 hours. Despite the recent appreciation, the asset is still below its all-time high of $4.900, set in 2021.

Ethereum currently accounts for $138 billion in stablecoins, about 51% of the $270 billion global market, according to DefiLlama. JPMorgan projects this sector could reach $500 billion by 2028, while Standard Chartered believes the figure could reach $750 billion by as early as 2026.

The network can also see positive impacts on ETH's price as activity increases, as user fees are burned, reducing the circulating supply. This mechanism can sometimes offset the asset's issuance through staking.

Following a reduction in burn rates due to network upgrades, the resurgence of interest from companies like Circle and Robinhood has reignited the debate over Ethereum's central role. Circle, for example, boosted the sector with a successful IPO, while Robinhood introduced its own Ethereum-based layer-two solution.

For JPMorgan, the passage of the GENIUS Act was a turning point that spurred growth across various sectors, such as DeFi, NFTs, and spot markets. The bank sees the move as part of a stronger bridge between the traditional financial system and the world of decentralized finance, fueled by strategic partnerships and practical applications.