The president of the firm developing smart contract platform Avalanche (AVAX) is optimistic that the total valuation of the crypto market will more than double this year.
In a new interview on CNBC’s The Exchange, Ava Labs chief John Wu says he believes that crypto as an asset class can grow over 111% in the next 12 months.
“The asset class, which is roughly about $2.3/$2.5 trillion, we’ll be talking about the biggest story in 2022 is how the crypto asset class doubled and went to $5 trillion.”
At time of writing, the market capitalization of all crypto assets stands at $2.36 trillion.
Wu also unveils the reasons why he thinks crypto will grow despite indications from officials of the Federal Reserve that they will begin to taper asset purchases and raise interest rates this year to combat inflation.
“It’s going to probably be the only asset class that could withstand the headwind from the macro factors of Fed tightening and geopolitical issues that are out there, and I think the reason is very simple: because from where I sit, what I see is basically a massive inflow of talent capital and usage. I’m almost embarrassed to say that that’s a prediction because I’m just reporting what I see on a daily basis.”
Looking at Bitcoin, Wu predicts that while Bitcoin (BTC) will post gains this year, it will likely lose market share as he sees other altcoins outperforming the rest of the crypto markets.
“Bitcoin will probably lose more dominance even though it’s going to grow nicely. It’ll go probably to 30% dominance from 40% right now and if it’s a $5 trillion for the industry, that’s roughly a $75,000 price target.”
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