Digital Assets on the Rise: A $10 Trillion Market Cap by 2026?
A New Era of Adoption
A recent report from Standard Chartered predicts a staggering fourfold increase in the digital assets market cap, reaching $10 trillion by the U.S. mid-term elections in late 2026. This growth forecast is based on anticipated regulatory shifts following a projected Republican sweep in the recent election cycle.
Regulatory Changes Pave the Way
Geoffrey Kendrick, Head of Research at Standard Chartered, believes that favorable regulatory policies will drive adoption across the asset class. He expects a repeal of SAB 121 and favorable stablecoin regulations to be enacted shortly after the new administration takes office in January 2025. Additionally, Standard Chartered anticipates the SEC to adopt a softer regulatory stance on digital assets, further opening pathways for mainstream use.
Assets with Practical Use Cases to Outperform
The report suggests that assets closely linked to practical, end-use cases—like Solana, which is expected to outperform Bitcoin and Ethereum—are likely to see the most significant growth. Kendrick sees strong growth potential for sectors like gaming, tokenization, and emerging areas such as decentralized physical infrastructure (DePIN) and consumer social.
A Republican-Led Administration’s Impact
Kendrick emphasizes that the regulatory clarity and adoption policies expected from a Trump administration could lift the entire asset class, providing an environment conducive to digital assets going mainstream. Standard Chartered reiterates its end-2025 target prices for Bitcoin at $200,000 and Ethereum at $10,000, driven by expectations of a Republican-led administration’s policies.
The Future of Digital Assets
These insights into the potential trajectory of digital assets and the broader regulatory landscape will be explored further at Benzinga’s Future of Digital Assets event on Nov. 19, where industry leaders will discuss the future of cryptocurrencies amid anticipated regulatory changes.
Investing in the Future
As the digital assets market continues to evolve, investors are looking for ways to capitalize on the growth potential. With the right strategies and tools, investors can position themselves for success in this rapidly changing landscape.
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