According to a recent CNBC report, Ripple’s CEO, Brad Garlinghouse, predicts a major expansion in the cryptocurrency market capitalization by the end of 2024.
With the current global crypto market cap standing at approximately $2.59 trillion, Garlinghouse anticipates this figure could double in the coming years.
During the conversation, Garlinghouse expressed considerable optimism about the macroeconomic trends shaping the crypto landscape. He highlighted the emergence of spot bitcoin exchange-traded funds (ETFs) as a major development, noting that it has facilitated substantial institutional investments in crypto.
Another factor Garlinghouse pointed to as a potential catalyst for driving the crypto market cap beyond $5 trillion is Bitcoin’s upcoming halving event. In fact, Bitcoin’s halving event, scheduled in approximately two weeks or around 2,000 blocks, is poised to reduce the miner reward from 6.25 BTC to 3.125 BTC per block. This event, occurring roughly every four years, is a programmed feature of Bitcoin, designed to control inflation and gradually limit the total supply to 21 million bitcoins.
Historically, Bitcoin halvings have been significant catalysts for price fluctuations, often preceding bullish trends in the market. However, there’s debate on whether the impact of halving events is already factored into the market, especially considering Bitcoin’s recent breach of its all-time high prior to the halving.
Analysts from Coinbase suggest that this unique circumstance may indicate that the halving effect has already been priced in by astute traders. Nonetheless, there remains anticipation for potential price rallies spurred by the halving, reflecting the enduring belief in Bitcoin’s long-term value and the continued significance of halving events in shaping market dynamics.
In other words, some analysts suggest that the recent all-time high of Bitcoin may already reflect the anticipation of the halving event. Nonetheless, Garlinghouse remains bullish on its potential impact.
In addition to market dynamics, Garlinghouse also expects more regulatory clarity in the United States under the new administration. The U.S. Securities and Exchange Commission (SEC) has maintained a cautious stance on cryptocurrencies, exemplified by its ongoing legal dispute with Ripple Labs. Garlinghouse anticipates that the new administration will provide greater regulatory certainty, which could positively influence market sentiment and foster institutional participation.
Meanwhile, Ripple has recently announced its entry into the stablecoin market, challenging the dominance of USDT and USDC. The company plans to introduce a U.S. dollar-pegged stablecoin on the XRP Ledger and Ethereum.
David Schwartz, Ripple’s chief technology officer, emphasized that their project aims to facilitate enterprise-grade institutional adoption of the stablecoin. Leveraging their experience in regulatory compliance, Ripple aims to position its stablecoin competitively in the market.
