Coinbase CEO Remains Bullish On Stablecoins Despite Growth Slowing Down

• Matrixport data shows USDT and USDC year-on-year growth peaked in October and has fallen since, indicating reduced liquidity support.
• Coinbase CEO Brian Armstrong said on Monday he remains optimistic about stablecoins due to the GENIUS Act's regulatory clarity.
• Allium data reveals over $5 trillion in stablecoin transactions in the past 30 days, with retail payments making up a minor share. 

Coinbase (COIN) CEO Brian Armstrong remained optimistic about stablecoins on Monday, even though data indicates their growth may be slowing down.

In a post on X, Armstrong said he remains hopeful about the long-term significance of stablecoins in global payments, citing a CNBC interview from last Wednesday. Armstrong noted that 2025 might be a “tipping point” for the crypto industry. He pointed to the GENIUS Act, stating that it has made regulations around stablecoins clearer.

His comments come at a time when the growth of stablecoins seems to be slowing down, as per a recent research from Matrixport. It indicated that while the supply of stablecoins keeps growing, the year-on-year growth of key tokens like USDT and USDC peaked in October and has been going down since then. It said that this suggests that liquidity support for crypto markets is getting a little weaker.

On Stocktwits, the retail sentiment around USDC continued to be in ‘bearish’ territory, with ‘low/ levels of chatter over the last day. Additionally, the retail sentiment for USDT also remained in ‘bearish’ territory with ‘normal’ levels of chatter in the same time frame.

How People Use Stablecoins Is Changing

Data from Allium cited by Visa showed that the way people utilize stablecoins is changing. It suggests that stablecoins handled more than $5 trillion in total transaction volume in the last 30 days, although only a small part of that was for retail-sized purchases. Even as giants like Coinbase are big players in the industry, growth seems to be slowing down.

Armstrong Highlights USDC Adoption, Rising Institutional Use

In the CNBC interview, Armstrong spoke on USD Coin (USDC), which Coinbase works on alongside its issuer Circle (CRCL). He called it the fastest-growing regulated stablecoin this year and said the company is still excited about using it for cross-border payments, invoicing, and business-to-business transactions.

Armstrong said that clearer rules have led to more involvement. He pointed out that more than 120 companies stated that they will accept stablecoin payments in the months after the law was implemented. He stated that 264 organizations, including banks and fintech companies, have now added Coinbase's developer platform, which offers "crypto as a service." 

Coinbase (COIN) ended the day at $250.42 on Monday, down 6.37% from its previous close. On Stocktwits, retail sentiment around COIN dipped from ‘bullish’ to ‘neutral’ territory over the past day, as chatter remained at “normal” levels. 

Read also: ARK Invest Buys More Crypto Stocks While Its Circle And Coinbase Positions Sit at Losses

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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