The total valuation of cryptocurrencies can reach $10 trillion from its current levels around half a trillion, believe Royal Bank of Canada (RBC) Capital Markets analysts Mitch Steves and Amit Daryanani.
In their research note released this month, Steves and Daryanani said there is huge potential for the digital currency market in the long term, reported Yahoo Finance.
“On a near-term basis we think it is quite difficult to make price statements which is why we are flagging the move now in the case that it sustains. Longer term, we think crypto currencies are here to stay and will likely become a large market (our long-term estimate for the Crypto Currency space is in the $10 Trillion dollar range versus ~ $500B today).”
Industry observers were quick to agree with the RBC analysts although they wanted to know the timeline Steves and Daryanani are predicting for the cryptocurrency space to reach that size.
Jared Blikre, a producer and anchor for Yahoo Finance who has been closely covering the digital coin sector, described the prediction as too broad.
“They didn’t put a timeline one it. So yes, it is realistic,” Blikre said about RBC’s forecast of a $10 trillion crytocurrency market.
The market valuation is, for now, just an arithmetic that does not account for money flowing into the markets. But as interest is rising and exchanges become more liquid, valuations may grow. At the beginning of 2017, the entire market cap of cryptocurrencies was about $15 billion, with Bitcoin dominating more than 90% of the valuation.
As altcoins rose, the total valuation has risen and Bitcoin accounts for around half the value. Yet Bitcoin remains the strongest brand, attracting the most mainstream attention, as other coins are largely unknown.