Bloomberg's crypto analyst Jamie Coutts is projecting near-explosive growth in the smart contract sector over the next few years. In a recent tweet, Coutts made a bold prediction that the total market capitalization of the smart contract ecosystem is likely to reach somewhere between $5 to $14 trillion by 2028. The prognosis assumes a humungous growth from the current $350 billion.
Coutts doesn't indulge in wishful thinking. His estimations are based on current statistics. The number of daily crypto users has already exceeded 5 million – up by 14% from 2022 and quarter-to-quarter growth averaging 29% since 2019.
If this pace is more or less maintained (Coutts applies a "moderate" 20% growth rate), the number of daily crypto users may hit 100 million by 2028, with the smart contract market cap growing correspondingly.
"While overly simplistic extrapolations such as this should never be solely relied on for valuation purposes, the exercise illustrates that users and prices are inextricably linked and that as adoption continues prices are likely to track much higher for some assets," Coutts writes.
The analyst brings up PayPal's case for comparison. It took the fintech giant 13 years to hit 100 million users. Now, with 400 million customers on board, its growth has slowed down. The time frame for the smart contract ecosystem may be similar, assuming that the launch of Ethereum was the starting point for the industry.