Blockchain adoption continues unabated — Bloomberg analyst (Express Summary)

The Unstoppable Rise of Blockchain: Projections Hint at 100 Million Users and Trillion-Dollar Valuations

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https://cointelegraph.com/news/blockchain-adoption-unabated-bloomberg-analyst

Bloomberg Intelligence analyst Jamie Coutts suggests that blockchain adoption has shown unwavering growth, persisting through both bullish and bearish market conditions. Coutts projects that if this trend continues, blockchain technology could amass 100 million daily users by 2028. He emphasizes the significance of being part of this significant trend, stating that neglecting exposure could be costly.

In the third quarter of 2023, daily active addresses surpassed five million, marking a 14% increase from 2022. Coutts highlights a consistent quarter-on-quarter growth rate of 29% since 2019 and suggests that with a more moderate 20% QoQ growth rate, the technology could hit the 100 million daily user milestone by 2028.

Comparing the adoption rate of blockchain to PayPal’s growth trajectory, Coutts notes that it took the fintech giant 13 years to reach 100 million daily users. Drawing parallels, he estimates a similar timeframe for blockchain adoption, particularly since Ethereum’s introduction in 2015 marked the beginning of smart contracts.

Coutts anticipates potential increases in valuations for blockchain-based companies, projecting a valuation range of $5 trillion to $14 trillion for the blockchain ecosystem once 100 million users are onboard — a substantial leap from the current $350 billion valuation.

These projections align with data indicating sustained interest in blockchain technology. Despite market downturns, crypto industry development rose by 5% in 2022. Furthermore, a Celent survey from 2022 revealed that 91% of institutional investors express interest in investing in tokenized assets — blockchain-based tokens representing ownership of both physical and digital assets.

While Coutts acknowledges the need for caution in relying solely on simplistic extrapolations for valuation purposes, he suggests that the exercise illustrates the interconnected nature of users and prices. As adoption continues, prices are likely to ascend for certain assets in the blockchain space.