Although Bitcoin, Ethereum and other crypto assets have shown parabolic growth in recent years, they are far from being relevant on a macro scale. Dan Tapiero, co-founder of DTAP Capital and Gold Bullion Int:

$200 billion is too small to be of any significance to the macro authorities. Gold is $12 trillion and no one really cares. #Bitcoin has a clearance up to at least 250k. 25 times before the macro authorities of Big Boy Global Macro start caring that it exists.

According to a fund manager, however, the chances are good that the crypto market will soon swell to trillions.

Fund Manager: Krypto is on its way to a trillion dollar market capitalization

Spencer Noon, founder of DTC Capital, believes that the crypto market is well on the way to achieving an aggregated market capitalization in the coming years.

His optimistic mood is limited to one decisive factor: billions of crypto dollars are coming onto the chain to use DeFi. Crypto dollar (or crypto dollar) is a term that has recently been used to describe US dollar stablecoins based on distributed networks such as Tether, USD Coin and TrueUSD.

The strong fundamental background of #crypto – which is different from any previous bull market – is that billions of crypto dollars come onto the chain to use #DeFi. As long as this shows no signs of slowing down, we are on our way to a multi trillion dollar total market for this room.

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Noon is right: According to Coin Metrics, there are now more than $20 billion in tokens on block chains like Ethereum, Tron and EOS. Thats more than the $2 to $3 billion only two years ago.

On-chain data shows that a large proportion of these dollars are used in DeFi, where users can earn much higher returns than with traditional bank accounts.

At some point, some of the capital stored in crypto dollars could leak into crypto-native assets such as Bitcoin or Ethereum and drive them up enormously due to the fiat amplification effect. The amplification effect suggests that every dollar put into crypto space leads to a growth in market capitalization much greater than one dollar due to liquidity.

Many others see it the same way

Noon is not the only one who believes that the cryptomarket will reach a market capitalization in the trillions in the coming years.

Raoul Pal, CEO of Real Vision and Wall Street veteran, estimates that Bitcoin is very likely to reach a market capitalization of $10 trillion in the coming decades. That corresponds to over 500,000 dollars per coin.

Pal is extremely bullish on several aspects of the crypto-currency market, including monetary policy trends and a very positive technical setup.

Another cop is Chris Burniske from Placeholder Capital. He believes that BTC and ETH will be in a race for a market capitalization of USD 1 trillion each in the coming market cycle.