According to analysts at Bakkt Holdings, the total cryptocurrency market capitalization will reach $ 3 trillion by 2025. The company plans to release an app for retail P2P payments in the spring.
Bakkt released its market growth forecast as part of an investor presentation on the company’s plan to enter the stock market through a merger with Victory Park Capital. Bakkt is majority owned by Intercontinental Exchange Inc., which also owns the New York Stock Exchange. According to the press release, as a result of the transaction, Bakkt will be worth about $ 2.1 billion.
Last week, cryptocurrency market capitalization exceeded $ 1 trillion for the first time in history, although the fall in the price of bitcoin and other digital assets over the past few days has led to a decrease in the total value to about $ 979 billion, according to CoinMarketCap.
Bakkt currently supports the cryptocurrency derivatives market, including bitcoin futures, but in March the company plans to release a new consumer app that will give users the ability to manage digital assets and use them for spending and P2P payments.
“We are leveraging these transformations to benefit both customers and merchants, truly opening up a huge market and expanding the opportunities for digital asset monetization,” said Bakkt CEO Gavin Michael.
In a presentation to investors, Bakkt analysts calculated that the company’s revenue, net of transaction costs, could grow by an average of 75% per year to $ 515 million by 2025. The company’s cash flow is expected to be positive by 2023.
Bakkt operates in a “mass serviced addressable market” that was worth about $ 1.6 trillion in 2020, including $ 564 billion in the “notional value” of the cryptocurrency. By 2025, Bakkt analysts estimate that the company’s total target market will grow to $ 5.1 trillion, including $ 3 trillion in cryptocurrency.
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