Former Goldman Sachs executive Raoul Pal says the next bull cycle could bring an explosion in the market capitalization of all digital assets.
In a new interview with Altcoin Daily, the macro expert says he expects a huge increase in the adoption of digital assets that could cause the total market cap of crypto to skyrocket by as much as 900% from its current value during the next bull market.
“Obviously, I think we go well through new all-time highs. I think the whole ecosystem of crypto, we go from 425 million users where we are today – I think at the end of this cycle, there will be a billion users by the kind of use cases we’ve talked about.
Don’t forget we’ve got CBDCs (central bank digital currencies), stablecoins. There’s a lot going on still. So if the entire space is going to grow 2.5x in the number of users, well the market cap of the entire space is 5 or 10x.”
Pal also says he is closely watching the development of layer-2 altcoin projects for new use cases, which could boost the value of their individual market cap.
“And then let’s see how people value layer-2s in this. We don’t really know how layer-2s accrue much value. Do we have to have a massive amount of transactions? In which case, then you need stuff like Ticketmaster with millions and millions and millions of transactions to drive value to those chains because they batch them and then batch them down to ETH (Ethereum).”
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