Bitwise isn’t alone in its bullishness on stablecoins, with Circle CEO Jeremy Allaire predicting the explosive growth of the sector due to a “huge appetite” for digital dollars.
Bitcoin is poised to record a new all-time high of $80,000 in 2024, the same year stablecoins are set to collectively settle more money than payments giant Visa, says a Bitwise senior research analyst.
In a Dec. 13 post on X (formerly Twitter), Bitwise’s Ryan Rasmussen outlined 10 bullish predictions for the crypto industry in 2024, with one of the major themes being the explosive growth of the stablecoin industry.
According to Bitwise, stablecoins will be used to settle more volume than Visa payments volume, describing the dollar and other asset-pegged tokens as one of crypto’s most “killer apps.”
By the third quarter of 2023, Visa processed more than $9 trillion in payments while stablecoin trading volume topped $5 trillion.
Rasmussen pointed to stablecoins growing from a market cap of near-zero to a whopping $137 billion, all within the span of the last four years. Considering that growth trend, he predicted that stablecoins in 2024 would only witness more trading volume and utility.
Bitwise isn’t alone in its stablecoin-oriented bullishness.
In a Dec. 13 interview with CNBC, Circle CEO Jeremy Allaire said the demand for stablecoins is going to explode over the next few years as investors seek the safety of internet-enabled digital dollars.
Additionally, asset manager Van Eck predicted that the total stablecoin market cap would grow to reach $200 billion by the end of 2024.
Rasmussen also sees a strong year ahead for Bitcoin, which he predicts will trade above $80,000 in 2024, with the expected launch of the first spot Bitcoin exchange-traded fund and April’s halving event acting as major catalysts for price growth.
However, Bitcoin predictions for 2024 have varied widely across analysts and market commentators. In November, Bitcoin commentator Plan B said he expected the average price of Bitcoin to be at least $100,000 between 2024 and 2028. BitQuant, meanwhile, set a target price of around $250,000 after the halving in 2024. Some commentators even see the possibility of Bitcoin eventually going to $1 million.
Bitwise speculates that not only will the spot Bitcoin ETF be approved, but its launch will be the most successful ETF launch of all time, capturing $72 billion in assets under management within the next five years.
Bitwise is among 13 financial institutions applying for an approved spot Bitcoin ETF with the United States Securities and Exchange Commission.
Ethereum is also predicted to improve significantly in 2024, with Bitwise betting on a 100% increase in revenue to $5 billion, adding that the EIP-4484 upgrade could bring gas costs to below $0.01 on the main network.
Outside of crypto assets, Coinbase stands as the top TradFi contender to gain the most from the expected bull market of 2024, with Bitwise forecasting a 100% growth in revenue next year, something that will see it beat Wall Street expectations 10 times over.
Source: cointelegraph.com
