Crypto 2030: The future of global currency is being rewritten

By the end of this decade, the crypto world could reach a market capitalization of up to 10, or even 12 trillion USD. This is not merely fanciful speculation, but a scenario that is gradually taking shape thanks to the massive influx of funds from large financial institutions, significant technological advancements, and the fact that governments are finally starting to establish a regulatory framework for this potential market.

Of course, the intense price fluctuations will not disappear overnight. However, looking at the big picture, we can see that the cryptocurrency industry is gradually moving past the initial phase of chaos to reshape the entire map of the global monetary system step by step.

The invasion of Wall Street has changed the entire landscape

Finally, Wall Street has truly joined the game. Spot Bitcoin ETF funds have provided large asset managers with a safe and government-approved bridge to enter the crypto world – and now they are crossing that bridge.

The next development will be the emergence of similar funds for major altcoins like Ethereum and Solana. Analyst Cathie Wood from Ark Invest has calculated that if financial institutions only allocate 6.5% of their investment portfolio to Bitcoin, the value of this currency will explode. Even ETF funds alone could soon hold a large portion of the current total Bitcoin supply.

Not only limited to investment funds, many companies have also begun to incorporate Bitcoin into their balance sheets as a hedge against inflation. Strategy and Metaplanet are two of the most typical examples. And it doesn't stop at Bitcoin – recently, ETH has also emerged as a tool that businesses are using as a reserve asset.

Currently, the real "giants" – pension funds – are also beginning to explore the market, and their participation could bring in trillions of USD in new capital. This is not just a story of rising prices, but more importantly, the involvement of large investors who have the ability to dampen sudden market volatility in the crypto world.

Thanks to this trend, the total market capitalization of the crypto world has skyrocketed: in just the past 2 years, the market value has increased by 278%. Specifically, since the last Bitcoin halving in April 2024, this figure has risen by 79%.

Crypto market capitalization chart | Source: TradingViewAs of the time of writing, the total market capitalization of the crypto world has reached 3.8 trillion USD.

Global Legal Battle: Common Rules or Prolonged Chaos?

Around the world, governments are rushing to find ways to adapt to the rapid development of cryptocurrency, but no consensus solution has yet been proposed. In the US, a strong wave advocating for transparency has emerged for some time. The FIT21 Act – which has already been passed by the House – aims to end the "power struggle" between the SEC and CFTC. It is precisely such clear rules that institutional investors have long been waiting for.

Meanwhile, the European Union is taking a step ahead with the MiCA regulatory framework – which will officially come into effect at the end of 2024 – aimed at creating a unified set of rules for the entire bloc, helping to protect consumers and maintain system stability.

On the contrary, China has chosen a completely different path. Beijing continues to suppress cryptocurrency trading while promoting the use of the state-controlled digital yuan. As such, the global regulatory landscape is becoming tangled, but the emerging legal clarity in the West could strengthen trust, paving the way for the next wave of capital to flow into the market.

The booming niche markets in the crypto world ecosystem

Not the entire market will grow together; instead, small but highly potential segments are starting to explode. Decentralized Finance – DeFi – has the potential to become an industry worth 231 billion USD as both individuals and organizations begin to get accustomed to "trading finance without banks."

NFTs are gradually breaking out of the confines of art galleries and entering the fields of gaming, music copyrights, and even real estate red books – laying the groundwork to become a $211 billion market.

The blockchain gaming industry is witnessing a remarkable turnaround thanks to the "play-to-earn" model, a market that some experts believe could reach a staggering value of up to 600 billion USD.

However, the "giant monster" might actually be the technology of tokenizing physical assets ( such as office buildings or gold bars ) into digital tokens. Specifically, the idea of tokenizing real-world assets ( RWA ) has been valued with potential up to 16 trillion USD and is seen as a strong bridge between the traditional financial world and the modern blockchain world.

External forces and internal factors: Contradictory influences on the market

The crypto market today is no longer living separately in its own "bubble." The decisions of the Federal Reserve (Fed) regarding interest rates have now had a direct impact on Bitcoin prices – similar to the effects on the stock market – indicating that the level of interconnection between financial markets is becoming increasingly profound. The view that Bitcoin is a safe haven, completely detached, is becoming increasingly "outdated."

In addition to the influences from the global economy, the crypto market also faces numerous internal barriers of its own. The sudden collapse of a major exchange, vulnerabilities in smart contracts that drain millions of USD, or a key stablecoin unexpectedly losing its peg to the USD – any of these events could create powerful tremors throughout the entire system.

And further still, there always exists a silent but dangerous threat – that is quantum computers. In this "apocalyptic" scenario, the machines of the future could easily break the cryptographic codes that are the foundation protecting today's blockchain.

The green revolution of crypto

For many years, the "dark" secret of the crypto market has been the enormous electricity bills – especially from Bitcoin mining activities. This huge environmental cost has made many investors, those concerned about the sustainability of capital flows, hesitant and withdraw from the market.

However, the situation has completely changed as Ethereum – the second largest cryptocurrency in the market – underwent a comprehensive overhaul in its operating system. Through the new mechanism called "Proof-of-Stake" (PoS), Ethereum has reduced energy consumption by over 99.9%. This single change has been enough to demonstrate to the entire industry that: cryptocurrency can indeed be "greenified".

Now, a massive wave of capital from ESG-focused investment funds – which had previously turned away from the crypto market – is beginning to seek out more sustainable niches in this fertile land.

The curtain rises: What will the financial system look like in 2030?

So, what will the picture of the crypto world look like in 2030? It will be larger, more complex, and more closely intertwined with our everyday financial lives than ever before. No one can be sure which coin will ultimately win, but the role of the "big players" is becoming increasingly clear.

Bitcoin seems to be gradually becoming the "digital gold", serving as a core value storage channel for the entire crypto world ecosystem. Meanwhile, Ethereum is rising to become the "global decentralized computer" – a foundational layer where new generation financial tools will be developed and deployed.

Behind these two giants, there will be a group of specialized altcoins, designed to address specific issues in each particular field. The road for the crypto market to reach the milestone of 10 trillion USD will not be smooth, but will resemble a roller coaster ride with breathtaking peaks interspersed with "harsh" free falls.

However, with massive capital flows, a new legal framework gradually taking shape, and an incessant wave of technological innovation, all the necessary elements are converging to open up a decade that could completely redefine the concept of "currency" – and the way we use it.

*ESG – stands for Environmental, Social, and Governance (Environment, Society, and Governance), is a standard used to measure the sustainability and responsibility of businesses based on three main pillars.

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