Bitcoin
Cryptocurrency markets will reach $7.5 trillion by 2025, says Bernstein. Seven ways to participate in the rally – DL News
- Crypto markets have stagnated due to the Bitcoin halving.
- However, Bernstein expects crypto markets to triple to $7.5 trillion by 2025.
- Here are seven reasons why analysts anticipate a massive recovery.
Crypto is just heating up.
That’s pretty much the conclusion of a new research report suggesting that the total value of cryptocurrencies will triple to $7.5 trillion by 2025.
Bernstein researchers Gautam Chhugani and Mahika Sapra outlined in a note to clients how seven factors can help them enjoy recovery.
Bitcoin
Bernstein sees Bitcoin rising to $150,000 until 2025. The “unprecedented” inflows from 10 spot Bitcoin exchange-traded funds, launched in January, have now “reinforced our conviction.”
While inflows have slowed since early April, “it is a short-term pause before ETFs become more integrated with private banking platforms, wealth advisors and even more brokerage platforms.”
Ethereum
Ethereum, the world’s second-largest cryptocurrency, is up 43% this year but has struggled to follow Bitcoin.
“Ethereum had to fight this with one hand tied” behind its back, Chhugani and Sapra wrote.
The reason? The US Securities and Exchange Commission has not yet approved a spot Ethereum ETF.
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Most market watchers say the odds The number of US regulators approving similar funds – when the first application closes on May 23 – is low.
However, Bernstein said a rejection could trigger litigation, similar to the The case for grayscale to convert its future Bitcoin ETF into a spot fund, which will bring the “narrative back to ETH.”
Ethereum Staking
Bernstein also advised investors to keep an eye on the cryptocurrency’s staking economy.
This is where companies like Lido and EigenLayer will continue to drive Ethereum’s growth in the coming year.
Solana
Solana is still only the fifth-largest cryptocurrency in the world, with a total value of $60 billion.
However, Bernstein said its single-layer integrated design, low transaction costs, fast processing and dominant market share in stablecoin volumes reflect “growing dominance as a payments powerhouse.”
It’s set to grow as payments giants like Stripe adopt Solana features, Chhugani and Sapra wrote.
DeFi
The crypto crackdown has predominantly focused on centralized exchanges like Coinbase and Binance.
This will be positive for the growth of decentralized finance, Bernstein analysts said.
Tokenization
Tokenization is a big theme of 2024, with Black stone It is Franklin Templeton advancing further in this space.
Chhugani and Sapra wrote that this push will see new entrants join the fray – both from the worlds of crypto and traditional finance.
Crypto Games
For years, web 3 games have been touted as the future of video games.
Despite a wave of blockchain-based platforms hitting the market in 2021, none have captured the imagination of mainstream players.
Now, venture capitalists and analysts predict that web 3 games are making a comeback.
Bernstein analysts advise investors to invest in Ronin Blockchain, which is primarily focused on gaming.
Although your main game Infinite Axie has lost 95% of its value since its peak in November 2021, Bernstein noted that Ronin has integrated 11 new games and has around three million active monthly users.
Eric Johansson is news editor at DL News. Have a tip? Contact eric@dlnews.com.