On Friday, Bloomberg crypto analyst Jamie Coutts projected a potential explosion in the market cap of smart contract cryptocurrencies.

What Happened: Coutts said that the smart contract blockchain sector, led by Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL), could increase by 3,900% within the next five years.

In a post on X, Coutts mentioned that, currently, the daily user base for smart contract platforms stands at over 5 million, with a robust growth rate of 29% per quarter since 2019.

If we apply a more moderate 20% QoQ growth rate then we could reach 100 million daily users by 2028 pic.twitter.com/QuYzzGs2wa

— Jamie Coutts CMT (@Jamie1Coutts) November 3, 2023

Should this expansion continue, Coutts anticipates a user increase to 100 million by 2028, a twentyfold surge.

Comparing the trajectory to that of PayPal, which serves over 400 million users, Coutts suggested that smart contract blockchains could mirror this growth pattern if one were to consider Ethereum's inception in 2015 as the starting point.

Also Read: Ethereum At A Crossroads: Vitalik Buterin Points To Three Make-Or-Break Transitions

It took PayPal 13 years to reach 100Million daily users. They now have >400m but growth has slowed.

If Ethereum was day zero for smart contracts (2015) then it may take a similar time frame for blockchains to reach similiar level of adoption. pic.twitter.com/Nw4CNKosXn

— Jamie Coutts CMT (@Jamie1Coutts) November 3, 2023

With a steady quarterly growth of 20%, Coutts estimates that the total market valuation of the smart contract ecosystem could leap from the current $350 billion to a staggering $5 trillion to $14 trillion. This would coincide with the user base's expansion to 100 million users.

What does a 20% QoQ growth rate mean in terms of valuations?

Basic regressions show the ecosystem could be valued btw $5T-$14T by the time 100m users are onboard. Thats up from $350b today. pic.twitter.com/sWQMGmaDMC

— Jamie Coutts CMT (@Jamie1Coutts) November 3, 2023

Coutts also underscored the connection between user adoption and asset pricing. As the sector continues to attract users, he said he foresees a substantial price uptick for certain cryptocurrencies within this domain.

At the time of writing, Ethereum was trading at $1,895.36, up 8 percent in the last seven days. Solana was trading at $41.73, up by close to 30 percent in the last seven days. 

Now Read: Crypto Expert Warns Of $440 Billion Wipeout, Shares Concerning Prediction About Bitcoin

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