Circle CEO Jeremy Allaire supported Bitwise's assessment, predicting that the sector will boom due to a "huge appetite" for US dollar-pegged stablecoins.
Bitwise senior research analyst Ryan Rasmussen stated that Bitcoin is poised to reach its all-time high of $80,000 in 2024, and that stablecoins will transfer more money than payment giant Visa in the same year.
In an X (formerly Twitter) post on December 13, Rasmussen outlined ten bullish predictions for the crypto industry in 2024, with one of the main themes being the explosive growth of the stablecoin industry.
According to Bitwise, stablecoins will have more volume than Visa payment volume, and dollar and other fiat pegged coins will become one of the most important elements of the crypto market.
By the third quarter of 2023, Visa had processed more than $9 trillion in payments, while stablecoin transaction volume had exceeded $5 trillion.
Rasmussen pointed out that stablecoins have increased from a near-zero market value to $137 billion in the last four years, and claimed that given this growth trend, stablecoins will have more transaction volume in 2024.
Bitwise is not alone in expecting stablecoin-focused growth.
Circle CEO Jeremy Allaire said in an interview with CNBC on Dec. 13 that demand for stablecoins will explode in the coming years as investors' need for the reliability of internet-backed digital dollars grows.
Rasmussen also said it will be a strong year for Bitcoin, which he predicts will trade above $80,000 in 2024, and stated that the first spot Bitcoin ETF approval and the halving event in April will be important catalysts for the price increase.
However, Bitcoin predictions for 2024 vary widely. 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, on the other hand, set a target of around 250 thousand dollars after the halving in 2024. Some commentators have even raised the possibility of Bitcoin eventually rising to $1 million.
Bitwise predicted that the spot Bitcoin ETF would not only be approved, but would become the most successful ETF launch of all time, hitting $72 billion in assets under management over the next five years.
Bitwise is among 13 financial institutions that have filed with the SECÂ for a spot Bitcoin ETF.
It was stated that Ethereum will also develop significantly in 2024. Bitwise added that revenue will increase by 100 percent to $5 billion and that the EIP-4484 upgrade could reduce transaction costs to less than $0.01 on the mainnet.
Outside of crypto assets, Coinbase appears to be the TradFi platform that will gain the most from the 2024 bull market, and Bitwise, Wall St. It is forecasting a 100 percent increase in revenue next year, exceeding its expectations by a factor of ten.
You can follow our CryptoMentor account to be informed about the latest developments.
