Standard Chartered issued an unusually rosy note on the crypto industry's near-term prospects on Friday, estimating that the digital assets market is poised to nearly quadruple its market capitalization to $10 trillion by the end of 2026.
We expect to see similar price gains for digital assets (in percentage terms) over the next two years until 2021, the Bank of England said in a joint note. Decrypt. “As of 2021, existing digital assets will see price increases and new sub-segments will emerge; at this point, real-world use cases are finally poised to move into the mainstream.”
The bank has doubled down on previous estimates that by the end of next year, Bitcoin will reach $200,000 and Ethereum will exceed $10,000. That's a price jump of roughly $76,500 and $2,950 from their current prices.
Much of this enthusiasm stems from Donald Trump's decisive victory in Tuesday's US presidential election. Trump has made a list of crypto-related laundry Commitments On the campaign trail this year, it seems to be increasing It is likely Armed with Republican majorities in the Senate and House, to retake the White House.
Standard Chartered expects Trump and his congressional allies to quickly implement a number of measures that will unleash positive price action for many cryptocurrencies.
Among them are cancellations Interesting 121which discourages banks from holding crypto; of Stable coin rule; The complete dismantling of the US Securities and Exchange Commission (SEC's). crypto crack; And Trump has the potential to create a strategic American government. Bitcoin backupAlthough Standard Chartered has expressed enthusiasm among some Republicans and industry members, it thinks there is a “low probability” of such a scheme.
“The new US administration could bring about the regulatory changes needed to drive the next level of growth in digital assets,” Standard Chartered said.
The bank expects other new developments to define the crypto ecosystem in the next two years. One, despite Bitcoin's rocket price, the world's top cryptocurrency is set to reduce its dominance in the digital assets sector – from a current estimate of 60% of the entire crypto industry to just 40% by the end of 2026.
Driving this explosion in the value of altcoins, Standard Chartered predicts, will be the rise of real-world applications for crypto tokens with utility.
“Digital assets that are highly exposed to end-use are likely to benefit the most,” the bank wrote. “We expect Solana to outperform BTC and ETH in particular.”
Standard Chartered is betting that a number of use cases are set to drive this altcoins trend in the near future, including game development, decentralized physical infrastructure (or Dipin) and consumer social products across chains.
Edited by Andrew Hayward.
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