## Crypto Market Cap Projected to Triple in 2024
South Korea-based Korbit Research Center anticipates the global cryptocurrency market capitalization could expand up to $5 trillion next year, more than three times its current size of $1.6 trillion. This projection is detailed in the newly released “2024 Crypto Market Outlook Report.”
The report, authored by Korbit’s research team, explores four key areas of growth: the expansion of cryptocurrency use cases, the advent of spot ETFs for digital assets, the rise of Real World Assets (RWA) and rollup solutions, and the implications of market regulation on cryptocurrency sorting.
Jeong Seok-moon, head of Korbit Research Center, forecasts that the overall cryptocurrency market cap could surge to as much as $5 trillion in 2024. He attributes this optimistic outlook to a confluence of favorable events, including the Federal Reserve’s recent pivot towards interest rate cuts, the potential approval of cryptocurrency spot ETFs, and the forthcoming Bitcoin halving event. Collectively dubbed the “Triple Boost,” these factors are expected to bolster investor sentiment in the digital asset space.
## Bitcoin & Ethereum ETFs on the Horizon
Korbit research analyst Choi Yoon-young predicts that both Bitcoin and Ethereum spot ETFs could debut in the first half of next year. The Bitcoin spot ETF is particularly anticipated to receive approval by January 10, marking the final decision date for the application submitted by Ark Invest. Should it pass, the expectation is that Ethereum spot ETFs will swiftly follow, with the earliest decision date being May 23 for the seven applications currently in the queue.
## Focus on RWAs and Rollup Solutions
Analyst Kang Dong-hyun highlights the importance of Real World Assets (RWA) and rollup solutions within the blockchain technology landscape. RWAs, which tokenize tangible assets, are increasingly integral to financial institutions and could see significant capital inflows under institutional guidance.
Rollup solutions, aimed at scaling Ethereum, are expected to gain traction despite existing challenges related to storage costs and scalability. Kang points to the upcoming “Dencun” upgrade scheduled for early next year, which could potentially address these issues. Additionally, new tokens associated with rollup solutions are anticipated to enter the market.
## Impact of Regulatory Frameworks
Korbit researcher Kim Min-seung emphasizes the potential for regulatory reforms to sift through the myriad of cryptocurrencies, highlighting a trend towards favoring exchanges that comply with regulations. The recent resignation of Binance founder Changpeng Zhao over alleged violations of U.S. banking laws is indicative of a broader market shift towards regulatory adherence. Exchanges like Coinbase that prioritize regulatory compliance could see increased prominence in the market restructuring.
Jeong added, “The cryptocurrency market has rebounded strongly this year, and we foresee an accelerated uptrend in 2024. Should Bitcoin spot ETFs list on U.S. exchanges, it would not only enhance Bitcoin’s utility as an investment asset but also significantly influence the broader crypto ecosystem and public perception.”
jeo@newsis.com
