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Blockchain adoption continues unabated — Bloomberg analyst

Blockchain adoption continues unabated — Bloomberg analyst

According to projections by Bloomberg Intelligence analyst Jamie Coutts, if the current rate of adoption continues, blockchain technology could have 100 million daily users by 2028.

Coutts highlighted that blockchain adoption has been consistent despite market fluctuations, stating that not being involved in this significant trend could be costly.

Coutts stated that daily active addresses exceeded 5 million in the third quarter of 2023, with a 14% increase from the previous year, and quarter-on-quarter growth has averaged 29% since 2019. With a more moderate 20% quarter-on-quarter growth rate, Coutts believes that 100 million daily users could be reached by 2028.

Coutts compared the rate of blockchain adoption to the growth of PayPal, noting that it took the fintech giant 13 years to reach 100 million daily users. He added that if Ethereum marked the beginning of smart contracts in 2015, it may take a similar timeframe for blockchains to achieve such widespread adoption.

If the current pace of adoption continues, blockchain-based companies may experience increased valuations. Coutts suggested that the blockchain ecosystem could be valued between $5 trillion to $14 trillion once it reaches 100 million users, a significant increase from its current valuation of $350 billion.

The projections by Coutts align with data indicating a sustained interest in blockchain technology. Despite market downturns, there was a 5% growth in the crypto industry in 2022. Additionally, a Celent survey in 2022 revealed that 91% of institutional investors are interested in investing in tokenized assets, which are blockchain-based tokens representing ownership of physical and digital assets.

Coutts predicted that as adoption continues, prices for certain assets are likely to increase significantly due to the correlation between users and prices. However, he cautioned against relying solely on simplistic extrapolations for valuation purposes.

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