Blockchain Adoption Soars as Forecasted by Bloomberg Analyst
Bloomberg Intelligence analyst Jamie Coutts predicts that if the current rate of blockchain adoption continues, the technology could reach 100 million daily users by 2028. Despite fluctuations in the market, blockchain adoption has remained consistent and promising. Coutts warns that missing out on this trend could be costly for businesses.
Exponential Growth in Blockchain Adoption
Coutts highlights that daily active addresses in the third quarter of 2023 have surpassed 5 million, marking a 14% increase from the previous year. Additionally, the quarter-on-quarter growth rate has averaged at 29% since 2019. Utilizing a more conservative growth rate of 20% per quarter, the projection indicates that there could be 100 million daily blockchain users by 2028.
This growth rate is comparable to PayPal’s journey towards reaching 100 million daily users, which took the fintech giant 13 years. Coutts suggests that since Ethereum’s introduction in 2015 marked the beginning of smart contracts, it may take a similar timeframe for blockchains to achieve widespread adoption.
The Value of Blockchain-based Companies
As blockchain adoption continues, Coutts anticipates a significant increase in the valuations of blockchain-based companies. Current data suggests that the blockchain ecosystem could be valued between $5 trillion to $14 trillion once there are 100 million users on board. This would be a substantial leap from the current valuation of $350 billion.
These projections align with the sustained interest in blockchain technology. Despite market downturns, the development in the crypto industry experienced a 5% growth in 2022. Moreover, a Celent survey revealed that 91% of institutional investors are interested in investing in tokenized assets, which are blockchain-based tokens that represent ownership of physical and digital assets.
While Coutts warns against relying on simplistic extrapolations for valuations, he notes that the linkage between user adoption and asset prices indicates that as blockchain adoption increases, asset prices are likely to rise. This presents significant opportunities for investors and businesses involved in the blockchain industry.
As predicted by Bloomberg Intelligence analyst Jamie Coutts, blockchain adoption shows no signs of slowing down. With the potential for 100 million daily users by 2028, it is crucial for businesses to capitalize on this growing trend. Stay updated with the latest news in the blockchain industry by visiting Uber Crypto News.