According to Jamie Coutts, a Bloomberg analyst, the use of blockchain technology has continued “unabated” in both bull and bear markets in recent years.
According to forecasts made by Bloomberg Intelligence analyst Jamie Coutts, if the current rate of adoption of blockchain technology continues, it could have 100 million daily users by 2028.
According to Coutts, the adoption of blockchain technology has continued “unabated” in both bull and bear markets over the past few years on X (formerly Twitter). “Not having exposure to one of the largest structural trends of the next decade could be costly,” the economist warned.
Coutts reports that the number of daily active addresses exceeded 5 million in the third quarter of 2023, an increase of 14% from 2022, while quarter-over-quarter growth has averaged 29% since 2019. “If we apply a more moderate 20% QoQ growth rate then we could reach 100 million daily users by 2028.”
Coutts contrasted the rate growth of PayPal with the adoption of blockchain technology. It took the massive fintech company 13 years, he claimed, to reach 100 million daily users. “If Ethereum was day zero for smart contracts (2015) then it may take a similar time frame for blockchains to reach similar level of adoption,” he said.
If adoption continues at its current rate, blockchain-based businesses could see an increase in valuation. According to Coutts, basic regression analysis indicates that once 100 million users are on board, the blockchain ecosystem’s potential value could range from $5 trillion to $14 trillion. “Thats up from $350b today.”
Coutts’ estimates align with data indicating a persistent interest in blockchain technology. Despite the market slump, the cryptocurrency industry saw 5% growth in 2022. Furthermore, according to a Celent survey from 2022, 91% of institutional investors are considering investing in tokenized assets, or blockchain-based tokens that stand in for ownership of both digital and physical assets.
“While overly simplistic extrapolations such as this should never be soley relied on for valuation purposes it, the exercise illustrates that users and prices are inextricably linked and that as adoption continues prices are likely to track much higher for some assets,” Coutts predicted.