Metcalfe’s Law Points to Growing Adoption
Former Bloomberg analyst Jamie Coutts believes that crypto is on its way to becoming mainstream, based on fundamental blockchain analysis. According to Metcalfe’s Law, the value of a network increases with the square of the number of connected users.
Despite Price Dips, User Base Grows
Coutts’ data shows that Bitcoin’s user base has grown steadily in 2022 and 2023, even during periods of price declines. This suggests that crypto adoption is on an upward trajectory.
Network Growth as a Signal
“The growth of daily active users on smart contract blockchains is a clear sign of global crypto adoption,” says Coutts. “This is the signal that crypto is moving towards mainstream adoption.”
Bitcoin Price Target of $100,000
Coutts also suggests that Bitcoin could reach a minimum price target of $100,000 by 2025. This is based on the MVRV (market value to realized value) Z-score, which indicates that Bitcoin is currently undervalued.
