The stablecoin market is experiencing significant growth, with the supply reaching $157 billion, approaching the all-time high of $165 billion set in 2022. This increase is largely attributed to the expansion of the total cryptocurrency market cap, driven by gains in digital asset prices. Despite the growth, JPMorgan highlights that stablecoin regulations could pose challenges for Tether, the issuer of USDT. The regulatory environment is described as hostile, yet there remains a substantial $150 billion of stablecoins on-chain. Analysts suggest that a more favorable regulatory climate could lead to a much larger stablecoin market, potentially reaching trillions, which would be beneficial for the US dollar. Additionally, USDT.D dominance is increasing, and network usage is growing.