Jefferies analysts warn that stablecoins could continue to weigh on bank profits, with core deposits expected to decline by 3% to 5% over the next five years, which would reduce banks' average earnings by about 3%. Although stablecoins are not an immediate existential threat, their growth in payments and decentralized finance (DeFi)—projected to reach a supply of $305 billion by the end of 2025 and currently valued at approximately $314 billion—poses a long-term risk to traditional deposit bases. Banks with high concentrations of retail and interest-bearing deposits are considered to be at the greatest risk.