Ethereum’s Market Cap Reaches $20 Trillion
According to the report, Ethereum’s growth over the past two years can be tied to the growth and adoption of decentralized finance (DeFi) by the public.
DeFi promises more interoperability, transparency, and financial services while minimizing intermediary fees and counterparty risk. After a tumultuous 2018-2019 year, Ethereum emerges in 2021 as the dominant smart contract platform for decentralized and non-fungible financial tokens (NFTs).
ARK noted that Ethereum and its applications could flip the services offered by traditional financial institutions, and the blockchain’s native token could also compete as a global currency at the time. there. The report highlighted the fact that ETH DApps are “appropriating traditional financial functions on the margins.”
If the market capitalization of Ethereum grows to $20 trillion by 2030, that means the value of each asset will increase to more than $170,000 per unit.
As of press time, the second-largest crypto asset by market capitalization is trading for less than $2500 after the crypto market crash along with the broader traditional market at the start of the year. .
Bitcoin price rises to 1 million USD
Regarding Bitcoin, ARK Investment predicts that the value of the leading digital asset will increase in tandem with the growing adoption of the currency that it will see among countries around the world.
This would result in the value of BTC increasing to over $1 million while its market cap would be away from $30 trillion.
Additionally, ARK expects Bitcoin to account for half of global remittances made by 2030. It also predicts the asset will play a more prominent role in emerging markets and transaction settlements. in the United States.
One of its other predictions was that institutional investors would embrace Bitcoin investments by that time, and it would be ingrained in the total market capitalization of gold. Cumulatively, all of this will help increase its value and importance in general.
Mining Bitcoin to Incentive New Energy Sources
While Bitcoin mining is a controversial issue due to the energy consumption of the space, ARK says Bitcoin mining will encourage new and more efficient forms of energy production.
In conclusion, the ARK study claims that Bitcoin mining has grown into a multi-billion dollar industry because it can convert energy into “a monetary asset[that]could be very important.” important in times of geopolitical uncertainty and financial market volatility”.