According to Bloomberg Intelligence analyst Jamie Coutts, the smart contract blockchain sector, including cryptocurrencies like Ethereum (ETH) and Solana (SOL), could see explosive growth in the next five years. Coutts predicts that these blockchains could reach 100 million daily users by 2028, growing at a rate of 20% quarter-on-quarter.
Currently, the number of daily users of smart contract blockchains is over five million, with a growth rate of 29% since 2019. Coutts estimates that a growth from five million to 100 million users would represent a 20-fold increase. To support his prediction, Coutts compares the potential growth of smart contract blockchains to that of PayPal, the online payments giant. It took PayPal 13 years to reach 100 million daily users, and they now have over 400 million. If Ethereum is considered day zero for smart contracts in 2015, Coutts speculates that it may take a similar timeframe for blockchains to reach the same level of adoption.
Coutts further elaborates that a 20% growth rate quarter-on-quarter could lead to a significant increase in the total market capitalization of the smart contracts ecosystem. Currently valued at around $350 billion, the market cap could soar to between $5 trillion and $14 trillion when the number of users reaches 100 million. This represents an increase of between 1,328% and 3,900%.
While Coutts acknowledges that simplistic extrapolations should not be the sole basis for valuation, he highlights the correlation between user adoption and asset prices. As adoption continues to grow, prices are likely to increase for certain assets within the smart contracts ecosystem.
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The potential growth of smart contract blockchains presents a significant opportunity for investors and the overall cryptocurrency market. With the increasing utilization of blockchain technology in various industries and the growing popularity of decentralized finance (DeFi) applications, the demand for smart contract platforms is expected to surge. Ethereum, in particular, has established itself as a leading smart contract blockchain, hosting various decentralized applications and protocols.
However, it is important to note that the growth projections provided by Coutts are speculative and depend on several factors, including technological advancements, regulatory developments, and market demand. The cryptocurrency market is known for its volatility, and investors should exercise caution and conduct thorough research before making investment decisions.
In conclusion, Bloomberg Intelligence analyst Jamie Coutts predicts explosive growth for the smart contract blockchain sector, with platforms like Ethereum and Solana potentially reaching 100 million daily users by 2028. These projections are based on historical growth rates and comparisons to established platforms like PayPal. While the potential for growth is significant, investors should approach the cryptocurrency market with caution and make informed decisions based on thorough research.
