Investing.com – In a note released Monday, analysts at Bernstein expressed optimism for the cryptocurrency market, predicting that “2023 will lay the foundation for a golden age of innovation for crypto applications that will last a decade. “.
Specifically, the broker’s analysts have predicted that “total cryptocurrency revenue will increase 16-fold over the next 10 years, growing from ~$25 billion in revenue in 2023 to ~$400 billion in revenue in 2023.” 2033”.
According to them, this growth in crypto industry revenue will be mainly fueled by “decentralized revenue generated by blockchains (“on-chain revenue”)”, which will represent approximately 50% of total revenue in 2033, compared to only 15%. today according to them.
Bernstein expects on-chain revenues to “grow from less than $4 billion today to nearly $200 billion in 10 years, driven by innovation in blockchain scalability and the growth of applications in the financial services and consumer technology segments”.
Note that Bernstein recalled that “on-chain revenue includes blockchain revenue from smart contracts, layer 2 revenue, and application revenue (today from DeFi, NFT, etc.)”.
Regarding DeFi (decentralized finance), Bernstein said, “Within on-chain finance applications, we expect decentralized exchanges, lending, and structured/tokenized products to be the primary revenue drivers.”
In the area of on-chain consumer applications, analysts anticipate “that NFT-based gaming revenue will be the primary driver of growth, followed by social and media assets and digital commerce.”
Finally, Bernstein also predicted a “rapid adoption of cryptocurrencies by institutions”, which will make institutional services (prime brokerage, custody, market making) an engine of revenue growth for the off-chain crypto industry. .