2022 has started and predictions for the new year are still ongoing. The President of Ava Labs has become the last crypto community member to share his predictions for the coming year.
Cryptocurrency Total Market Cap To Reach $5 Billion
Ava Labs President John Wu told CNBC that by the end of 2022, cryptocurrencies will double in value to have a market cap of over $5 trillion. The global cryptocurrency market cap currently sits at $2.24 trillion after hitting a peak of $3 trillion in Q4 2021. Ava Labs President predicts an increase in cryptocurrency market cap to over $5 trillion.
He adds that for the crypto market, “it will be the only asset class that can withstand the headwind from the macro factors of the Fed tightening and the geopolitical issues out there.”
“I see a huge flow of talent, capital and usage.”
Wu also noted that he was almost embarrassed to count this as a guess, as it basically stated the obvious truth. However, he predicts that Bitcoin will grow nicely, but will lose some of its dominance to newer blockchains.
He also adds that Ethereum is a much bigger story than Bitcoin in 2021, both in terms of price and usage. While making this comment, Wu drew attention to the 500% gain made by Ethereum compared to the 65% gain made by BTC.
He also cited the use of Ethereum in DeFi and NFTs as reasons for the growth of the network. Ethereum’s dominance has stabilized at 19.91%, while Bitcoin has recently dropped below 40% for the first time since 2020.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.