Jihan Wu: The cryptocurrency market will rise to tens of trillions of dollars

The cryptocurrency market will rise to tens of trillions of dollars, and even if a large portion of digital assets disappears, the price of the remaining ones will rise significantly. This was stated by Bitmain co-founder and, by coincidence, head of Matrixport and Bitdeer Jihan Wu in an interview with Forbes.

“Even if 95% of existing coins devalue or disappear, the growth rate of the remaining 5% will be enormous,” he said.

Commenting on founding Matrixport in 2019, Wu noted that many new users “will stay on the market forever,” so they will need capital-management products for digital assets.

Earlier Matrixport raised $100 million in funding following a Series C round. Investors valued the company at more than $1 billion.

According to Wu, cryptocurrencies “are created to be volatile.” He stressed that in the long run, the growth of their prices “will significantly exceed price fluctuations.”

The billionaire also highlighted the growth of the decentralized finance sector and said that participants in traditional markets and regulators will ultimately adopt blockchain technology.

“Innovations like DeFi are breathtaking. Cryptocurrencies and blockchain have created a new world, allowing fintech entrepreneurs to achieve greater success. Over time, traditional financial institutions and regulators will adopt blockchain technology,” Wu said.

In November, Bitdeer announced a merger with SPAC Blue Safari Group Acquisition Corp. The mining services provider was valued at $4 billion.