- Ava Labs President foresees a spike in cryptocurrency market capitalization to over $5 trillion.
- He notes that Ethereum recorded exponential growth because of the increasing use cases that it has.
- He predicts that Bitcoin will lose more of its dominance to newer bustling chains.
2022 has rolled in and the predictions for the new year are still pouring in. Ava Labs President is the latest cryptocurrency egghead to share his forecasts in the upcoming year.
Cryptocurrency Market Capitalization To $5 Trillion
The President of Ava Labs, John Wu told CNBC that he feels by the end of 2022, cryptocurrencies will double in value to have a market capitalization of over $5 trillion. Presently, the global cryptocurrency market cap currently sits at $2.24 trillion after reaching a peak of $3 trillion after an impressive Q4 2021.
“When I come back in 2022, the asset class which is roughly about $2.3 trillion, we’ll be talking about how the biggest story in 2022 is how the crypto asset class doubled and went to 5 trillion,” said Wu.
“It’s gonna be the only asset class that can withstand the headwind from the macro factors of Fed tightening and geopolitical issues that are out there,” he said. “I see a massive inflow of talent, capital, and usage.”
Wu noted that he is almost embarrassed to count this as a prediction because it’s basically stating the obvious fact. He predicts that Bitcoin will grow nicely but will lose a chunk of its dominance to more further blockchains.
With Ethereum looking to transition to PoS via ETH 2.0, Solana unlocking new feats in the gaming scene, Avalanche onboarding more projects, and Cardano perfecting its DApps ecosystem, they all skim as worthy adversaries. He also adds that Ethereum was a much bigger story than Bitcoin in 2021 both in terms of pricing and usage. Wu cites the 500% gain made by Ethereum as compared to the 65% gain made by BTC.
He also points to Ethereum’s usage in DeFi and NFTs as reasons for the growth of the network. Ethereum’s dominance is pegged at 19.91% while Bitcoin recently fell below 40% for the first time since 2020.
John Wu asserts that in the new year, DeFi for institutions will become a real thing as hedge funds will be looking to partner with protocols. Gaming will also be big in 2022 despite having a stellar 2021 with the metaverse receiving significant attention.
He foresees the growth of DAOs in the new year given the rise to prominence that it had in the last quarter of 2021. ConstitutionDAO and other decentralized autonomous organizations had the limelight beamed on them with their communities buzzing with excitement.
Ava Labs is the creator of the Avalanche blockchain that touts itself as the “fastest smart contracts platform in the blockchain industry, as measured by time-to-finality.” AVAX, the project’s native token, trades at $104.39 and ranks as the 11th largest cryptocurrency according to data from CoinMarketCap.