Chief Executive Officer (CEO) of Ripple, Brad Garlinghouse, revised its earlier ambitious predictions for the future market capitalization of the crypto industry, admitting that it had underestimated potential market growth.
Ripple’s CEO does not predict the market capitalization of cryptocurrencies
Garlinghouse appeared in a recent interview with Fox Business shed delicate on the growth potential of the cryptocurrency market and its behavior since the beginning of the year.
Ripple’s CEO was asked about his previous positive forecast for the cryptocurrency industry’s market capitalization, in which he predicted that market capitalization will double to approximately $5 trillion at the end of the year. According to CoinMarketCap, the current capitalization of the global cryptocurrency market is approximately $2.25 trillion.
In response to an inquiry, Garlinghouse expressed confidence that his earlier predictions were not very ambitious, emphasizing market potential for further growth. He admitted that he had underestimated the industry’s potential market capitalization by the end of 2024, citing factors such as the current dynamics of supply and demand fueling additional increases.
Garlinghouse noted that current market conditions are characterized by increased demand and decreased supplywith these dynamics playing a significant role in cryptocurrency performance.
He revealed that Bitcoin ETF spot market and general sentiment regarding Bitcoin’s value have significantly increased demand for the cryptocurrency. Meanwhile, the supply of Bitcoin is decreasing due to the increasing number of large-scale transactions investors are buying cryptocurrency quickly. Moreover, the upcoming Bitcoin halving is expected to further reduce the supply of the cryptocurrency.
Assessing the current state of the cryptocurrency market, Garlinghouse said that over the last six months, Bitcoin has increased by over 250%and further increases are expected. He also asserted that this excessive performance was largely due to the approval and launch of Spot Bitcoin ETFs as well upcoming Bitcoin halving.
Regulations are imperative for market development
Garlinghouse revealed this finding appropriate regulatory framework for the cryptocurrency market will bring positive effects for the market in the future.
He explained that one of the main factors hindering the development of this emerging market is the prevailing US stance against cryptocurrencies, suggesting that country’s enforcement actions regarding the growing industry were “problematic.”
Ripple’s CEO highlighted several countries, including Dubai, Singapore and United Kingdomthat actively apply cryptocurrencies and implement appropriate regulatory systems to support further market development.
Garlinghouse stated that the United States has significantly delayed recognizing the transformative and inventive impact of the cryptocurrency market, attributing this failure to United States Securities and Exchange Commission (SEC) and its current chairman, Gary Gensler.
Total market cap at $2.2 trillion | Source: Crypto Total Market Cap on Tradingview.com
Featured image from Bitcoinist, chart from Tradingview.com
