Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. The next few years are bound to be "exciting" for the cryptocurrency sector, according to Bitwise investment chief Matt Hougan. "Crypto is narrative-driven," Hougan said on Feb. 6 on X. "Right now, people are wondering what new narratives will lead us into the next bull market. Some are even wondering if there are any new narratives. From where I sit, there are quite a few."
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• The AI Marketing Platform Backed by Insiders from Google, Meta, and Amazon — Invest at $0.85/Share Hougan outlined nine catalysts that could drive the next cryptocurrency bull market. Hougan said he expects blockchains that generate revenue to garner interest and activity. Blockchains currently generate between $7 billion and $8 billion annually, Hougan said, adding that he expects this number to surge into the hundreds of billions as industry gains mainstream adoption. AI agents will use cryptocurrency rails to transact, Hougan said. This is based on the concept of agentic commerce, a growing narrative that as AI agents become more popular, they will eventually start making purchases on behalf of humans. Cryptocurrency proponents like Hougan suggest that only blockchains and cryptocurrencies can support that activity. "Fiat currencies are dying," Hougan said. He said the world would replace fiat with "hard currencies," citing Bitcoin as one such currency. Following the U.S. Securities and Exchange Commission’s approval of spot cryptocurrency ETFs in 2024, more institutions have entered the cryptocurrency space. Hougan suggested that the institutional adoption of cryptocurrencies and blockchain technology is only just beginning. He called it a 10-year megatrend, adding that it would bring trillions of dollars into the ecosystem. Trending: From Moxy Hotels to $12B in Real Estate — The Firm Behind NYC's Trendiest Properties Is Letting Individual Investors In. The cryptocurrency industry is yet to feel the impact of regulatory clarity, Hougan said. He said cryptocurrency investment and adoption would skyrocket once stablecoin legislation enacted last year and anticipated market structure legislation kicks in. Stablecoin adoption has become a major cryptocurrency narrative over the past year, following the U.S.’s enactment of the GENIUS Act in July. Hougan said stablecoins will become a trillion-dollar sector and the primary rails for 21st-century payments.