The early crypto bull and CEO of Unstoppable Domains explains why he expects stablecoins to hit $ 1 trillion by 2025 – and why Bitcoin could take at least a year to recover from this year’s crash

In this photo illustration, a double exposure image shows the Bitcoin logo and dollar bills

  • Matthew Gould became an early bitcoin bull in 2013 and has since founded the leading crypto company Unstoppable Domains.
  • Gould explains why, despite regulatory concerns, the stablecoin market will grow to $ 1 trillion by 2025.
  • He also shares his outlook on how the crypto markets will trade for the rest of this year.
  • Check out Insider’s business page for more stories.

Decentralized finance is about removing barriers by leaving out intermediaries and allowing direct transactions between two parties, often using cryptocurrencies that run on blockchain technology.

Cryptocurrencies are everywhere now, but they’re not quite as easy to use as some of their proponents would suggest. When most users send or receive digital tokens, they are often faced with the daunting task of handling a long hexadecimal crypto wallet address that is virtually indecipherable.

“Imagine you were selling a product and then the first thing people felt while using your product was fear, and so essentially it was for cryptocurrencies,” said Matthew Gould, CEO and Founder of Unstoppable Domains. to insiders.

For this reason, Gould, a bitcoin bull since 2013, launched Unstoppable Domains in 2018 to improve the user experience in managing crypto wallet addresses. Individuals can buy and own their own crypto domain that is easy to read and use.

This user-friendly concept caught the attention of well-known venture capitalists such as Draper Associates and Boost VC.

Gould took another step forward this week by partnering with Circle, which publishes the USDC stablecoin, to improve the crypto user experience. According to Coinmarketcap.com, USDC is the second largest stablecoin by market value at $ 25 billion, behind Tether, which has a market cap of $ 62 billion.

Stablecoins are cryptocurrencies that are linked 1: 1 to a fiat currency and are theoretically covered by reserves such as short-term government bonds and the currency itself.

Adding simple domain names will help Circle work towards wider stablecoins adoption as it removes another barrier from the fear and risk of accessing crypto.

Stablecoin growth

The stablecoin market has flourished in recent years, growing from less than $ 1 billion in 2019 to around $ 100 billion now.

Looking at the growth rate, Gould expects the private stablecoin market to reach $ 1 trillion by 2025, a 10x year-over-year growth for the next four years.

Matthew Gould, CEO and Founder of Unstoppable DomainsMatthew Gould, CEO and Founder of Unstoppable Domains

“Maybe we can do it even faster,” he said.

One of the drivers for this will be the further recovery of decentralized financial applications.

“The more people with stablecoins in their pockets, the more people can participate in the decentralized financing,” said Gould.

On the other hand, the rapid growth of stablecoins has brought financial risk with it. For example, Top Stablecoin Tether has yet to conduct an independent review. But Gould said that’s part of the territory.

“Whenever you have that type of growth, you are going to take a risk,” he said.

But as market competition increases, along with greater regulatory clarity, that risk will subside as products become safer for consumers, he said.

“Groups like Circle with their USDC have taken the most conservative and secure approach to building their stable coins,” said Gould. “And they have been really active in the US to make sure they are compliant.”

Gould is most concerned about the development of algorithmic stablecoins, such as IRON Finance’s stablecoin, which went to zero. These tokens have a completely different risk profile and shouldn’t be able to advertise this way, he added.

“You shouldn’t be able to call yourself a $ 1 coin unless you really have $ 1 in the bank,” Gould said. “That’s an opinion, we’ll see what others think. I’m glad that people are paying attention, I think it’s important that people do it.”

Regulators shouldn’t be too clumsy, however, as too many rules could stifle the rapid innovation that has so far been positive for consumers, Gould said. This is one reason why he believes that despite the government’s increasing focus on central bank digital currencies (CBDCs), there will still be rapid growth in privately issued stablecoins as public institutions move more slowly.

Outlook for the crypto market

The volatility of stablecoins and crypto assets has drawn the attention of global regulators as the leading crypto assets Bitcoin and Ether become more mainstream.

The new chairman of the SEC, Gary Gensler, spoke this week about regulating the cryptocurrency markets, which he called the “Wild West”.

Bitcoin (BTC) has fallen more than 50% from highs of around $ 64,000 in mid-April to lows of $ 29,000 in July. It’s now $ 38,000.

Gould doesn’t expect a return to April highs, at least not this year.

“I think we will continue to be bound by range for the rest of the year,” said Gould.

“I expect the crypto market to consolidate further in general. This is based on past experience. It usually takes a year or two for the market to collapse 50% or more, ”he said.

When Bitcoin plunged 50% from a then record of $ 19,891 in December 2017 to around $ 9,880 in February 2018, it took another two years for it to see another surge. After hitting a high of around $ 14,000 in April 2019, it gradually fell about 50% to a low below $ 4,000 in March 2020, marking the bottom of the coronavirus market crisis.

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