LATokens research team, formed by Deutsche Bank and McKinsey alumni, prepared the first LAT Crypto Research, outlining that total market capitalization of cryptocurrencies can reach $5 trillion by 2025, with asset-backed tokens driving the growth. To read the full report, follow the link, and we’ll share the highlights with you in this post.
Total Market Cap to Reach $5 tn by 2025
Cryptocurrencies market capitalization has surged by 830% from last August, reaching $165 billion. The adoption rate of cryptocurrencies may be as high as that of cell phones and broadband Internet, thanks to advantages of blockchain, such as low transaction costs, security, transparency, ease of cross-border transactions etc.
By that time crypto wallet penetration can exceed 5% of the world’s population, as the adoption rates of new technologies has significantly accelerated at the beginning of the 21st century. To illustrate, the number of crypto wallets has doubled every year since 2013.
The average wallet size today is $9,835. We expect that by 2025 the average wallet size can exceed $12,000, bringing total cryptocurrency capitalization to $5 trillion. Demand for crypto will be driven by the emergence of less volatile asset cryptocurrencies.
Asset Cryptocurrencies Will Drive the Growth
According to LAT Crypto Research, market capitalization of asset cryptocurrencies, also known as asset-backed tokens, can account for at least 80% of the total market by 2025. As their value is linked to asset prices, ranging from equities and commodities to real estate and works of art, they combine the benefits of blockchain with advantages of investing in hard assets, like greater stability.
Today volatility of crypto markets often makes investors reallocate funds from their crypto portfolios back into fiat and hard assets. Asset cryptocurrencies provide t...