South Korean Analysts: Global Crypto Market Cap Expected to Reach $5 Trillion in 2024

Crypto market analysts in South Korea anticipate that the global cryptocurrency market cap could reach $5 trillion by 2024, fueled by ongoing global adoption.

According to Hanguk Kyungjae, this projection comes from a report published by the Korbit Research Center, a part of the Korbit cryptocurrency exchange group.

Jeong Seok-moon, the director of the center, predicted that “the total market capitalization of [the cryptoasset market] next year will range from $4.5 trillion to a maximum of $5 trillion.” He noted that the market cap was at $1.6 trillion as of December 11, 2023.

Seok-moon attributed the expected significant increase to a “triple dose of good news,” including the increasing willingness of the United States Federal Reserve to cut interest rates, the potential regulatory approval for crypto spot ETFs, and the upcoming Bitcoin (BTC) halving event scheduled for April 2024. He believes these events will positively impact cryptoasset investment sentiment.

Additionally, another researcher at Korbit suggested that 2024 will be the year of tokenization, especially in the Real World Assets (RWA) sector. RWA refers to the tokenization of tangible assets like real estate, treasury bonds, loans, and more.

The same analyst highlighted expectations for increased “institutionalization” in the crypto market during 2024. This, they believe, will be a positive development for the industry, allowing for a reorganization and a separation of robust projects from less viable ones.

Despite a challenging 2023 and a prolonged bear market, South Korean crypto exchanges have been affected, experiencing declining transaction volumes and reduced competitiveness.