The global banking firm Standard Chartered published an upbeat projection regarding the developing cryptocurrency landscape, anticipating considerable market expansion. The bank forecasts that the digital asset sector may quadruple in size to achieve a $10 trillion market capitalization prior to 2026’s end.
This growth outlook aligns with expectations that real-world applications will significantly start to drive mainstream cryptocurrency adoption in the ensuing two years.
According to Standard Chartered’s analysis, cryptocurrency price performance could mirror gains seen during 2021’s bull run. The report highlights how not only existing digital currencies may experience substantial appreciation, but new market segments driven by functionality and mass adoption could potentially emerge as well.
Bitcoin and Ethereum Predicted to Set New All-Time Highs
Standard Chartered reaffirmed prior projections estimating Bitcoin reaching $200,000 and Ethereum surpassing $10,000 by 2025’s conclusion. These forecasted values are notably above present prices, with Bitcoin currently trading around $76,500 and Ethereum at approximately $2,950.
The bank’s report suggests such appreciation may stem from emerging use cases and regulatory clarity attracting institutional investors back to the crypto sphere.
Trump Re-election and Expected Policy Shifts to Boost Crypto Sector
Much of the optimism regarding cryptocurrency’s future is tied to Donald Trump’s recent reclaiming of the U.S. presidency. Throughout his campaign, Trump pledged various measures favouring the industry, such as reforms that could substantially impact the regulatory landscape governing digital currencies.
With Republican control of both the Senate and House of Representatives, enacting these changes appears poised to accelerate.
Standard Chartered anticipates that Donald Trump’s administration will enact various initiatives to invigorate cryptocurrency adoption. Potential moves incorporate undoing the prohibitions on banks holding digital currencies, crafting rules for stablecoins, and tapering the SEC’s strict monitoring of the industry.
There is even speculation regarding the formation of a US digital dollar reserve, though the bank judges this outcome as improbable despite sector optimism.
Bitcoin’s Dominance Diminishes as Alternatives Gain Traction
In spite of anticipated cost increases, Standard Chartered’s analysis indicates that Bitcoin will relinquish market leadership. At present, it commands about 60% of the total crypto value, but Bitcoin’s portion may shrink to 40% by late 2026. This power shift is anticipated to result from the burgeoning worths of other digital currencies, particularly those fulfilling real uses.
The report underscores that the subsequent phase of development in cryptocurrency will be spearheaded by tokens furnishing tangible applications. Bank experts explicitly call out sectors like decentralized physical infrastructure networks, gaming, and blockchain-based social media as probable growth drivers for alternative coins.
Solana Positioned for Outperformance
Solana, one of the highest market cap digital currencies, is expected to significantly outdo Bitcoin and Ethereum, according to the bank. Its utility for decentralized applications and social products may empower it to outpace first movers in growth. This prediction follows Solana’s recent rally, with its cost surpassing $200 after Trump’s reelection, highlighting swelling investor interest.
A New Era for Digital Assets?
The outlook from Standard Chartered underscores a transitional epoch for the crypto sector. With regulators signalling a more welcoming environment ahead and blockchain finding expanded applications, the ensuing years might witness digital currencies gaining ground into novel territories of utilization and worth.
However, whether projections of a $10 trillion market valuation will come to fruition stays uncertain—the coming changes promise noteworthy shifts overall. Meanwhile, entrepreneurs explore how distributed ledgers could reform finance, commerce, and governance itself.
On the horizon loom fresh highs of support and use, but also risks if oversight lapses. For agora observers and aficionados alike, vacillations are sure to persist as this nascent domain’s contours slowly emerge.
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