Bloomberg analyst Jamie Coutts predicts that a sector within the cryptocurrency market could experience explosive growth over the next five years. thinks.
Coutts says smart contract blockchains like Ethereum (ETH) and Solana (SOL) could grow 20% quarter-over-quarter, reaching 100 million daily users by 2028.
According to Coutts, the number of daily users of smart contract blockchains is now over five million as a result of a 29% quarter-on-quarter growth rate since 2019. Increasing the user base from five million to 100 million corresponds to a 20-fold growth.
A Bloomberg analyst thinks the growth of smart contract blockchains could mirror that of online payment giant PayPal.
It took PayPal 13 years to reach 100 million daily users. It currently has more than 400 million users, but growth has slowed. If Ethereum is day zero (2015) for smart contracts, it may take a similar amount of time for blockchains to reach a similar level of adoption.
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According to Coutts, a 20% quarter-to-quarter growth rate could cause the total market value of the smart contracts ecosystem to rise from around $350 billion currently to $5 trillion to $14 trillion once the number of users increases to 100 million. This is an increase of between 1,328% and 3,900% in the crypto sector.
While oversimplified estimates such as these should never be relied upon for valuation purposes, this exercise shows that users and prices are inextricably linked, and as adoption continues, prices could trend much higher for some assets.
