Zinger Key Points
- ARK projects stablecoin market capitalization could surpass $5 trillion, fueled by mainstream payment adoption and regulatory developments.
- The report also highlights the rapid rise of DeFi, tokenized assets and AI-powered financial services in the blockchain ecosystem.
ARK Invest has projected Bitcoin BTC/USD could reach $1.5 million by 2030 under its most optimistic scenario, with a base case of $710,000 and a bear case of $300,000.
Alongside Bitcoin's growth, the firm also highlighted the rapid rise of stablecoins and other digital assets as key drivers shaping the future of financial markets.
Bitcoin’s Long-Term Growth
ARK's long-term forecast is based on Bitcoin's increasing role in institutional investment, corporate treasuries and global reserve holdings.
The firm outlines several key adoption models in its “Big Ideas 2025” report:
- Institutional Investment: Bitcoin could represent 1% to 6.5% of the global market portfolio, excluding gold.
- Digital Gold Narrative: If Bitcoin captures 20% to 60% of gold's market capitalization, it would see a significant price boost.
- Emerging Market Hedge: Countries facing currency devaluation may adopt Bitcoin as a reserve asset, potentially reaching 0.5% to 6% of the M2 monetary base.
- Corporate Treasury Holdings: Companies may allocate 1% to 10% of their cash reserves into Bitcoin.
“Bitcoin's adoption across financial sectors continues to expand, reinforcing its role as a global reserve asset and store of value,” ARK's report stated.
Also Read: Solana To $520 By End Of 2025, VanEck Predicts
The Role of Stablecoins
ARK's report also highlights the explosive growth of stablecoins, which have gained traction as a key element of the digital economy.
The firm notes that stablecoins are increasingly being used in cross-border transactions, decentralized finance (DeFi), and even mainstream payment networks.
- Stablecoin Market Expansion: The total market capitalization of stablecoins could exceed $5 trillion by 2030.
- Mainstream Payment Adoption: More financial institutions are integrating stablecoins for remittances and payment settlements, reducing reliance on traditional banking systems.
- Regulatory Clarity and Institutional Use: Stablecoins are likely to see increased adoption as central banks and governments provide clearer regulatory frameworks.
"Stablecoins are reshaping how money moves across borders, creating a more efficient, lower-cost payment system than traditional banking," ARK stated in its analysis.
DeFi, Tokenization and AI
Further, ARK's report identifies DeFi growth, tokenization, and artificial intelligence (AI) integration as transformative forces in the financial sector:
- Decentralized Finance: The report highlights that DeFi platforms are growing at a 30% annual rate, offering alternatives to traditional financial services.
- Tokenized Assets: Real-world assets, including stocks, bonds, and real estate, are increasingly being tokenized on blockchain networks.
- AI and Blockchain: ARK sees AI-powered trading algorithms and automated financial services accelerating blockchain adoption
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