The LATokens research team has prepared the first LAT Crypto Research report that predicts exponential growth of crypto markets.
- The LATokens research team has prepared the first LAT Crypto Research report that predicts exponential growth of crypto markets.
- According to the report, by 2025 the total market capitalization of cryptocurrencies could reach US$5 trillion, with asset-backed tokens driving the growth.
- The average wallet size, which at present is US$9,835, is expected to exceed to US$12,000.
Due to the benefits of blockchain technology like low transaction costs, security, transparency, and ease of cross-border transactions, the adoption rate of cryptocurrencies may become as high as that of cell phones and broadband Internet. Since August 2016, the market capitalization of all cryptocurrencies has increased by 830% and reached to US$165 billion. The first LAT Crypto Research report has been prepared by the LATokens research team, formed by alumni of Deutsche Bank and McKinsey. The report predicts that by 2025 the total market capitalization of cryptocurrencies could reach US$5 trillion, with asset-backed tokens driving the growth.
The 21st century has witnessed a high rate of new technologies adoption. In a similar pattern, since the year 2013, every year the number of crypto wallets has doubled. Thus, by 2025 the penetration of crypto wallet could exceed 5% of the world’s population. As per the report, the average wallet size, which at present is US$9,835, is expected to exceed to US$12,000. This will bring the total cryptocurrency market cap to US$5 trillion. The demand for crypto will be driven by the emergence of less volatile asset cryptocurrencies.
As per LAT Crypto Research report, by 2025 the market capitalization of asset cryptocurrencies could reach at least 80% of the total market. Since the value of asset cryptocurrencies, also known as asset-backed tokens, are connected with the prices of assets, ranging from equities and commodities to real estate and works of art, they merge the benefits of blockchain with advantages of investing in hard assets.
Even though the remarkable market growth has drawn in a lot of new capital, some investors are skeptical about investing in crypto markets because of its volatility. For this reason, some investors are turning back to fiat and hard assets. However, asset cryptocurrencies seem to be a lucrative alternative as with the same exposure, it saves costs of conversion from crypto to fiat. By 2025, the value of asset cryptocurrencies is expected to reach US$4 trillion, according to LAToken analysts. Some prominent tokens linked to fiat currencies include Tether (linked to USD), Digix (linked to precious metals) and tokenized shares of blue chips, along with oil and gold.
Moreover, the report states that by 2025, trading volume of asset cryptocurrencies could reach US$40 trillion. In the long run, it predicts the capitalization of the corresponding traded assets to exceed by 10+ times. At present, on the whole, the value of the major asset classes is US$600 trillion, therefore the trading volume potential of asset cryptocurrencies could be as much as US$6 quadrillion.
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