Blockchain Technology Could Have 100 Million Daily Users by 2028, Says Analyst
According to Bloomberg Intelligence analyst Jamie Coutts, if the current rate of adoption continues, blockchain technology could have 100 million daily users by 2028. Coutts emphasized that blockchain adoption has been consistent throughout bull and bear markets in recent years, and not having exposure to this trend could be costly.
In the third quarter of 2023, daily active addresses exceeded 5 million, a 14% increase from the previous year. Since 2019, quarter-on-quarter growth has averaged 29%. By applying a more moderate growth rate of 20%, Coutts estimates that there could be 100 million daily users by 2028.
Comparing Blockchain Adoption with PayPal’s Growth
Coutts compared the rate of blockchain adoption with PayPal’s growth. He noted that it took PayPal 13 years to reach 100 million daily users. If Ethereum was day zero for smart contracts in 2015, Coutts believes it may take a similar timeframe for blockchains to reach the same level of adoption.
Rise in Valuations for Blockchain Companies
With the increasing adoption of blockchain technology, companies operating in this space may experience a rise in valuations. Coutts suggests that once there are 100 million users onboard, the blockchain ecosystem could be valued between $5 trillion to $14 trillion, compared to its current valuation of $350 billion.
Sustained Interest in Blockchain Technology
Data shows sustained interest in blockchain technology despite market downturns. Development in the crypto industry increased by 5% in 2022. A survey conducted by Celent revealed that 91% of institutional investors are interested in investing in tokenized assets, which are blockchain-based tokens representing ownership of physical and digital assets.
Hot Take: Blockchain Adoption and Price Linkage
Coutts predicts that as adoption of blockchain technology continues, prices are likely to track much higher for certain assets. While it’s important not to rely solely on simplistic extrapolations for valuation purposes, the exercise illustrates the inextricable link between users and prices in the blockchain space.
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