Ripple CEO Brad Garlinghouse predicts that the total market capitalization of cryptocurrencies will exceed $5 trillion this year, with the value of the sector doubling.
Garlinghouse cites several factors for this growth, including the upcoming "halving" of bitcoin and the introduction of the first bitcoin exchange-traded fund (ETF) in the United States.
Bitcoin's upcoming halving, which occurs approximately every four years, is anticipated to contribute to market momentum, with bitcoin currently comprising around 49% of the total cryptocurrency market. Additionally, regulatory developments in the US and the enforcement actions of the SEC, particularly against Ripple, are significant variables influencing market dynamics.
According to the CEO of blockchain firm Ripple, the total market capitalization of cryptocurrencies will surpass $5 trillion this year.
According to the CEO of blockchain firm Ripple, the total market capitalization of cryptocurrencies will surpass $5 trillion this year. (Photo : by Dan Kitwood/Getty Images)
Brad Garlinghouse of Ripple believes the value of the cryptocurrency sector as a whole will double, citing several macro reasons, such as the forthcoming "halving" of bitcoin and the introduction of the first spot exchange-traded fund (ETF) for bitcoin in the United States.
The U.S. authorized the first bitcoin exchange-traded funds (ETFs) on January 10. Commission on Securities and Exchanges. They let institutions and individual investors to acquire exposure to bitcoin without actually holding the underlying asset by trading on U.S. stock markets.
Bitcoin Halving: What to Expect
In the history of bitcoin, the half of the currency occurs about every four years. Bitcoin miners, who are volunteers on the network who utilize powerful computers to validate transactions and mint new coins, receive a mining incentive that is cut in half.
The next one is scheduled for later this month; the previous one happened in 2020. As of April 4, the whole cryptocurrency market was valued at over $2.6 trillion. A doubling of the market would suggest a $5.2 trillion overall market capitalization for cryptocurrencies.
Over 140% more has been added to Bitcoin in the past 12 months. Data from CoinGecko indicates that on March 13, it reached a record high above $73,000. But since then, it has significantly dropped below the $70,000 mark.
The primary token propelling advances for the whole market has been the world's digital currency. With a market valuation of $1.3 trillion as of April 1, Bitcoin makes up around 49% of the whole cryptocurrency market.
The potential for favorable regulatory movement in the US is one of the main variables that Garlinghouse believes will propel the cryptocurrency market to all-time highs.
Since this year is election year, proponents of the cryptocurrency space are confident that the incoming administration's policy priorities would be more receptive to the sector.
Under Chair Gary Gensler, the SEC has been vigorously enforcing its regulations against cryptocurrency businesses, including Ripple.
Alleging that Ripple illegally marketed XRP, a cryptocurrency with which it is intimately affiliated, in unregistered securities dealings, the SEC filed a securities case against the company. Ripple is contesting the lawsuit and disputes the allegations.
