Macro strategist Raoul Pal predicted “insane” demand for the blockchain space on Thursday, foreseeing cryptocurrency becoming a $100 trillion asset class over the next 6-8 years.
What Happened: In an X post, Pal emphasized the untapped demand for blockchain space from traditional finance and the potential of the stablecoin space to unlock trillions in value.
“I don’t think anyone realizes the insane demand for block space coming from TradFi… stablecoins TAM is in the many $ trillions and volumes a massive multiple of that…. and that’s just the start,” the former Goldman Sachs executive said.
Pal also said that the impending demand from Web2 to Web3 conversion would further drive up demand for blockchain rails.
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Pal labeled cryptocurrency as the “biggest macro trade” and projected the space to be worth $100 trillion in the next 6 to 8 years.
Why It Matters: Narratives surrounding stablecoins and asset tokenization have been gaining traction lately.
Treasury Secretary Scott Bessent said previously that stablecoins will unlock trillions of dollars in demand for U.S. treasuries in the near future. Similarly, Robinhood Markets (NASDAQ:HOOD) launched tokenized stock offerings last month, allowing users to gain exposure to U.S. private companies such as SpaceX and OpenAI.
Pal’s forecast aligns with his previous statements on the future of cryptocurrency. In May, he suggested that crypto was entering “Phase 2 of the Banana Zone,” a period where liquidity increases and prices accelerate after initial consolidation. This phase, according to Pal, represents the last leg of Bitcoin’s (CRYPTO: BTC) bull run.
Price Action: Bitcoin soared 6% in the last 24 hours to top $118,000 for the first time, according to data from Benzinga Pro. The total cryptocurrency market capitalization rose 6.17% to $3.68 trillion.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
