Former Goldman Sachs hedge fund manager and CEO of Real Vision, Raoul Pal, believes that the market capitalization of cryptocurrencies could multiply by 100 by the end of this decade.
At the time of this writing, the total market capitalization of the cryptocurrency sector globally is $ 2.2 trillion, and Pal said on the Bankless Brasil podcast that “There is a reasonable chance” that this figure could grow to around USD 250 trillion if the adoption models of cryptocurrency networks continue on their current trajectory..
Pal drew comparisons between current benchmarks for other markets and asset classes such as stocks, bonds, and real estate, noting that all of them have a market capitalization between “USD 250 and 350 billion.”
“If I look at the total derivatives market, it’s $ 1 trillion. I think there is a reasonable chance that it is a $ 250 trillion asset class, multiplied by 100, which would be the most growth of any asset class in history in the shortest period of time. “
“That will fit more or less with the idea that 3.5 billion people are using it, that’s just extrapolating the growth figures from the network. So if there are 3.5 billion users in 2030, the market capitalization will be about USD 250 trillion, “he added.
The total market capitalization of cryptocurrencies has fallen 6.8% in the last 24 hours, amid a significant decline in major assets. Bitcoin (BTC), Ethereum (ETH) and Binance Coin (BNB) have plunged 7.6%, 9% and 9.1% in the same period.
The recent drop may even come as a surprise to Pal, who during an interview on December 27 predicted that Bitcoin would get off to a strong start in 2022.as he believed at the time that a period of institutional selling and year-end profit-taking was over.
“It seems that they have finished because the market has been bumping for the past week, which was the traditional last week when everyone squared their books, “he said.
In November, Pal predicted that the bull run would not end in December like the previous cycles of 2015 and 2017, and that it would extend until around June.. Pal cited strong institutional inflows in the first quarter as one of the main reasons.