Blockchain adoption continues unabated – Bloomberg analyst

Bloomberg Intelligence analyst Jamie Coates predicts that if current adoption rates continue, blockchain technology could have 100 million daily users by 2028.

At X (formerly Twitter), Coates pointed out that blockchain adoption has been “unrelenting” throughout the bull and bear markets of the past years. “Not being exposed to one of the biggest structural trends of the next decade will be costly,” the analyst said.

Daily active addresses will exceed 5 million in the third quarter of 2023, up 14% from 2022, according to Coates, with quarter-over-quarter growth averaging 29% since 2019. We can reach 100 million daily users by 2028.

Bear market/bull market, adoption of #Blockchain technology continues unabated. Not being exposed to one of the biggest structural trends of the next decade can be costly.

5 million daily #crypto users today could be 100m in less than 5 years.

pic.twitter.com/RG6dRoiCes

— Jamie Coutts CMT (@Jamie1Coutts) November 3, 2023

Coutts compared blockchain rate adoption to PayPal's rate of growth. According to him, it took the fintech giant 13 years to reach 100 million daily users. “If Ethereum is day zero for smart contracts (2015), then blockchains may take a similar amount of time to reach the same level of adoption,” he added.

Blockchain-based companies are likely to see a rise in valuations, maintaining the current pace of adoption. Coates estimates that the blockchain ecosystem could be worth between $5 trillion and $14 trillion once 100 million users get on board. “That's up from $350b today.”

Coutts' predictions align with data that suggests continued interest in blockchain technology. Despite the market downturn, development in the crypto industry has grown by 5% in 2022. In addition, a 2022 survey by Celent showed that 91% of institutional investors are interested in investing in tokenized assets – blockchain-based tokens that represent the ownership of physical and digital assets.

“While very simple add-ons like this shouldn't be relied upon exclusively for valuation purposes, the exercise shows that users and prices are inextricably linked, and as adoption continues, prices can track very high for some assets,” predicted Coutts.

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