• Ethereum is predicted to surpass Bitcoin's market capitalization by 2029.
• The corporate additionally claimed that prediction markets might develop 100-fold on account of political occasions.
• DeFi and NFTs are poised to make a comeback by way of SocialFi and App Chain.

In response to main enterprise capital agency 1Confirmation, cryptocurrencies are anticipated to endure important change over the subsequent 5 years, with Ethereum predicted to surpass Bitcoin's market capitalization by 2029. The daring prediction comes because the current approval of Bitcoin and Ethereum spot ETFs indicators rising acceptance on Wall Avenue.

The Bitcoin ETF now boasts over $788 billion in property beneath administration, whereas the Ethereum ETF holds $88 billion, in response to a Q2 2024 LP letter shared by Nick Tomaino on X. Company donations to pro-crypto political campaigns have additionally surged to $119 million, regardless of pushback from the Biden administration.

1Confirmation predicts that Ethereum's market capitalization, presently round $321 billion, will surpass Bitcoin's $1.2 trillion by 2029. The agency argues that Ethereum's utility in decentralized purposes and finance offers it a big edge over Bitcoin's “digital gold” narrative. Ethereum's function in constructing a decentralized web has additionally attracted consideration from Wall Avenue.

Nonetheless, 1Confirmation factors out that current client traits in cryptocurrencies, resembling meme cash and NFTs, depend on recycled concepts and fail to result in important innovation. The corporate highlights the necessity for brand new, genuine merchandise to captivate audiences and drive the subsequent wave of adoption.

Prediction markets are one other space that 1Confirmation sees rising quickly in 2024, notably across the US presidential election and different main international occasions. These markets have seen important progress in worth, exceeding $1.1 billion this 12 months, and are anticipated to develop 100-fold over the subsequent few years.

Stablecoins on Ethereum play a key function in enabling these markets, that are gaining momentum the place official narratives and public opinion diverge.

1Confirmation expects prediction markets, in addition to the event of SocialFi and App Chain, to result in a resurgence in DeFi and NFTs.

The corporate believes that its new non-custodial merchandise will encourage customers to embrace decentralized finance with out the necessity for intermediaries, and that developments in L2 and L3 app chains will additional enhance scalability and consumer expertise, permitting DeFi to proceed to develop.