The market for
Jamie Coutts, chief crypto analyst at Real Vision, is one of the critics questioning the viability of the $30 trillion projection.
Are we being overly optimistic? The initial $30 trillion forecast came from a report published in June by Standard Chartered bank and consulting firm Synpulse, which estimated that RWAs could reach this valuation by 2034. However, Coutts cautions that these expectations may be too optimistic and that the projected exponential growth may not materialize in the near term.
Despite his more conservative view, Coutts suggests that even a $1.3 trillion market could trigger a massive “ripple effect” in other areas of the crypto industry, such as non-fungible tokens (NFTs), social platforms and gaming. However, it also raises concerns about how the value generated by these tokenized assets will be distributed, especially on the Ethereum network, which has been the platform of choice for many financial institutions for their forays into blockchain.
One of Coutts' main concerns is that much of the revenue generated by tokenization could be captured by Layer 2 networks, leaving the Ethereum base layer with a small fraction of the value.
More conservative projections also support a more measured growth view. A recent report by
Even more cautious estimates, such as those from Citigroup, suggest that between $4 trillion and $5 trillion in tokenized digital securities could be issued by 2030. This potential has led large firms, such as Goldman Sachs, to take significant steps in the tokenization arena, with plans to launch new tokenized products in the near future.
Image credit: Pixabay https://pixabay.com/illustrations/network-digitization-keyboard-hand-7482510/