Billionaire venture capitalist Chamath Palihapitiya believes that dollar-backed stablecoins are set to be the biggest business winners in 2025.
In a recent episode of the All-In Podcast, he explained how stablecoins largely broke free from the volatility of the crypto market in 2024. This shift is significant.
Palihapitiya pointed out that businesses are now using stablecoins for practical purposes. He shared some impressive numbers: by the end of the second quarter of 2024, stablecoin transactions hit about 1.1 billion, totaling $8.5 trillion in volume. To put that in perspective, that’s more than double what Visa processed during the same time.
He stated, “What we have now is something that has fundamentally crossed a point of no return.” He compared this moment to last year when he predicted Bitcoin would be the big trend in 2024. Now, he believes stablecoin usage will take center stage in 2025. “I think we’re finally going to challenge the duopoly of Visa and Mastercard,” he added.
Palihapitiya expects to see many new use cases for stablecoins this year. He also mentioned that President-elect Donald Trump might take action against credit card companies due to their high fees.
In his view, the stablecoin sector could potentially quadruple or quintuple by the end of 2025. That’s a bold prediction, and it’s one to watch closely.