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Could some Cryptocurrencies Hit Valuations of Trillions by Next Year?
A new study analysing the speed at which cryptocurrencies are growing has predicated that two companies will pass the trillion dollar valuation mark next year.
New research by Cryptohead has revealed that Bitcoin and Ethereum are tipped to be the first cryptocurrencies to hit a trillion-dollar valuation.
The sheer popularity of these two position well ahead of other competitor tokens. This makes sense given the runaway popularity of the two coins relative to their competitors.
However, this doesn’t mean that the rest of the cryptocurrency ecosystem has a long way to go to catch up. According to Cryptohead, Tether, BNB, Dogecoin, USD Coin (the only stablecoin directly tied to a fiat currency on the list), Decentraland, Fantom and Cardom will all hit trillion dollar valuations by 2024.
The cryptocurrency with the highest average annual growth rate happened to be Fantom. With an annual growth rate of 5,044% and with a market cap of $7 billion in 2022, Fantom is on track to hit the trillion-dollar mark in 2024.
As well as analysing specific coins and companies, the Cryptohead study found how that investment management company Galaxy Digital Holdings is on track to become the first crypto company to hit the trillion-dollar mark, predicted to reach it in 2026, based on an annual growth rate of 488%.
Likewise, the American digital payments company Block Inc. will find itself close behind, hitting this coveted valuation in 2029.
The study comes fresh off the heels on the UK Government unveiling new proposals on the regulation of cryptoassets that will see the UK move to adopt stablecoins as a recognised form of payment.
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The Government hopes to make the UK a global hub for cryptoasset technology and investment.
Additional measures being proposed include changing the UK tax system to develop the cryptoasset market and enhance its competitiveness. Part of this involves reviewing how cryptoasset-backed loans are treated for tax purposes.
This was quickly followed by the Isle of Man announcing that Blackfridge SC Limited has become the first GBP pegged stablecoin business to be licensed in the British Isles.
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