Crypto markets are set for unprecedented growth over the next few years, according to Matt Hougan, Chief Investment Officer of Bitwise Asset Management, who during a recent interview expressed his optimism for digital asset markets, stating he is “especially bullish on the next three years.”
While there may be bumps along the way, Hougan is confident that regulation will ultimately be a positive factor for the market.
The driving force behind the upcoming cycle, according to Hougan, will be a major technological breakthrough related to scalability. This breakthrough, dubbed the layer-2 epoch, will enable crypto to go mainstream in a previously impossible way.
With the cost of transactions on Ethereum and other blockchains set to drop dramatically, crypto will finally be able to penetrate the mainstream in a significant way.
Hougan believes that the excitement around this breakthrough is higher than ever before, and that it will drive the next bull cycle in the crypto markets by allowing them to “actually penetrate the mainstream.”
While non-fungible tokens (NFTs), decentralized finance (DeFi), and stablecoins have all been important developments in the space, scalability will be even more significant, with real-world applications that surpass even the first start of Bitcoin and Ethereum.
As CryptoGlobe reported, the co-founder and CEO of Bitwise Asset Management, Hunter Horsley, has spoken about the current state of the crypto market late last year, and revealed he expected a cryptocurrency bull cycle to start this year.
Notably, CryptoCompare’s latest Digital Assets Management Review report reveals that cryptocurrency investment products have continued to see positive growth in the early months of 2023, with total assets under management (AUM) reaching a record high of $28.3b billion in February, up 5.25% from the previous month, at a time in which digital assets keep outperforming traditional investments.
Featured Image via Unsplash