Bloomberg Intelligence analyst Jamie Coutts says that one crypto sector could experience explosive growth over the next half a decade.
Coutts says that smart contract blockchains such as Ethereum (ETH) and Solana (SOL) could reach 100 million daily users by 2028 by growing at 20% quarter-on-quarter.
According to Coutts, the number of daily users of smart contract blockchains is currently over five million as a result of a quarter-on-quarter growth rate of 29% since 2019. A growth in the user base from five million to 100 million equates to 20x growth.
The Bloomberg Intelligence analyst says that the growth of smart contract blockchains may mirror that of online payments giant PayPal.
“It took PayPal 13 years to reach 100 million daily users. They now have more than 400 million but growth has slowed.
If Ethereum was day zero for smart contracts (2015) then it may take a similar time frame for blockchains to reach a similar level of adoption.”
According to Coutts, a 20% growth rate quarter-on-quarter could result in the total market cap of the smart contracts ecosystem soaring from around $350 billion currently to between $5 trillion and $14 trillion when the number of users rises to 100 million – an increase of between 1,328% and 3,900%.
“While overly simplistic extrapolations such as this should never be solely relied on for valuation purposes, the exercise illustrates that users and prices are inextricably linked and that as adoption continues, prices are likely to track much higher for some assets.”
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: DALLE3
Credit: Source link
