Crypto Poised for a $10 Trillion Future? Hoskinson Identifies RWA as the Key

The founder of Cardano, Charles Hoskinson, is maintaining his stance on substantial predictions for the cryptocurrency world. Despite the industry's experience with repeated growth cycles and downturns, Hoskinson believes that we are merely at the beginning, and a larger transformation is on the horizon.

Key Takeaways

Charles Hoskinson predicts that the cryptocurrency market could expand to 2 billion users and reach a $10 trillion valuation by 2035.
The tokenization of real-world assets (RWA) is seen as a crucial driver for this growth, changing the nature of crypto from trading to financial infrastructure.
Despite his optimism, Cardano is facing market pressures and challenges in attracting users compared to rival chains.
Hoskinson believes in the coexistence of multiple blockchains and the importance of real-world use cases for crypto's future.

crypto

Today, the cryptocurrency market boasts over 500 million users globally, with a collective market value reaching trillions of dollars, including Bitcoin alone valued at approximately $1.75 trillion. While these figures are impressive, Hoskinson contends that this is just a stepping stone.

He envisions a future where the sector expands to 2 billion users and achieves a total valuation of $10 trillion—representing a fourfold increase in user adoption and more than tripling the current market size. Hoskinson foresees this significant growth occurring within the next decade, by the year 2035.

Why Hoskinson Believes Crypto Will Soar

According to Hoskinson, the primary catalyst for this potential surge is the tokenization of real-world assets, commonly referred to as RWA. This signifies the process of placing tangible assets—such as bonds, real estate, and commodities—onto blockchain networks.

This concept is no longer purely theoretical. Recent data from RWA.xyz indicates that approximately $20 billion worth of assets, including bonds and real estate, have already been tokenized. That figure continues to rise, even amidst sluggish market conditions.

RWA Tokenization

Hoskinson argues that this transformation alters the landscape entirely. When assets become digitized on-chain, cryptocurrency evolves from merely trading tokens to serving as a fundamental financial infrastructure. By incorporating global payment solutions and standardizing practices across various blockchains, this leads to what he terms a “unified financial market.”

Additionally, projects focused on privacy are also significant. Hoskinson highlights efforts like Midnight, which seek to balance regulatory compliance with user privacy. He believes such tools could encourage institutions to confidently bring substantial capital into the blockchain space.

Cardano Faces Challenges in the Market

However, Hoskinson’s optimistic outlook comes during a challenging period for his own network, Cardano (ADA). As the year closes, Cardano finds itself under significant market pressure. Selling activity remains high, and any upward price movements have proven short-lived.

Currently, buying volume is sparse, and price performance is struggling to exceed critical resistance levels, with momentum failing to shift positively. Consequently, ADA is stabilizing near essential support zones.

ADA Analysis
ADAUSD now trading at $0.34. Chart: TradingView

Should these support levels break, analysts caution that the token may dip below $0.30—an important psychological threshold closely monitored by traders. Market activity has generally slowed, with sellers maintaining dominance.

This disconnect in dynamics has attracted criticism, as some argue that Hoskinson's calls for collaboration stem from Cardano's difficulties in attracting users at the pace of other major blockchain networks.

Hoskinson, however, disputes the notion that the cryptocurrency space operates as a zero-sum game, where one chain triumphs over others. He insists that the future landscape should accommodate the growth of multiple networks in tandem.

In his recent discussions, he emphasizes that there is ample wealth to distribute within the market. He believes that projects with tangible use cases will naturally attract users as the overall market grows.

This perspective explains Hoskinson's receptiveness to forming partnerships. Previously, he has hinted at potential collaborations with significant ecosystems such as XRP and Solana, aiming for collective advancement rather than divisive competition.

The question of whether the cryptocurrency industry will achieve a valuation of $10 trillion remains open-ended. However, if the trend of tokenizing real-world assets continues and if global finance truly begins to integrate with cryptocurrency solutions, the vision that Hoskinson has for the market may not be so far-fetched after all.

Featured image from Unsplash, chart from TradingView