By Source: ArtDown/Adobe
South Korean crypto market analysts think the worldwide crypto market cap could hit the $5 trillion mark in 2024 as global adoption continues.
Per Hanguk Kyungjae, the claims were made in a report published by the Korbit Research Center, part of the Korbit crypto exchange group.
The center’s director Jeong Seok-moon predicted that “the total market capitalization of [the cryptoasset market] next year will range from $4.5 trillion to a maximum of $5 trillion.”
Jeong stated that the market cap stood at $1.6 trillion as of December 11, 2023.
He claimed the massive rise would come after a “triple dose of good news,” namely:
The United States Federal Reserve’s increasing willingness to cut interest rates
The possibility of regulatory approval for crypto spot ETFs
The forthcoming Bitcoin (BTC) halving event (expected to take place in April 2024)
Jeong claimed that these three events would “have a positive effect on cryptoasset investment sentiment.” The director said:
“The market has rebounded this year and the upward trend is expected to expand into next year. I think this will further increase the general public’s interest in the cryptoasset market.”
Global crypto trading volumes. (Source: CoinCodex)
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Another Korbit researcher claimed that 2024 would be the year of tokenization, as the Real World Assets (RWA) sector gets into gear.
RWA are tokenized “tangible” assets, and the term is usually used to refer to tokenized real estate, treasury bonds, loans, and more.
Another Korbit analyst claimed that 2024 would see more progress made in the “institutionalization” of the crypto market.
The same analyst claimed this would be a positive step for the market, allowing the industry to “reorganize” and “sort the wheat from the chaff.”
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The prolonged bear market and a sluggish 2023 have taken a heavy toll on South Korea’s crypto exchange market.
Despite a flurry of crypto activity in recent weeks, transaction volumes have fallen in 2023. Exchange competitiveness has also shrunk.
Trading volumes on the Korbit crypto exchange in the past 12 months. (Source: CoinGecko)
In June, the market-leading exchange Upbit’s market share stood at over 90%.
This factor led Korbit and other chasing-pack exchanges to indefinitely do away with commission fees, their main source of income.
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