Real Vision analyst Jamie Coutts predicts a remarkable surge in the valuation of the layer-1 crypto sector driven by the power of artificial intelligence (AI) technology. Coutts, sharing his insights on the social media platform X, reveals that smart contract platforms could potentially reach a market value of up to $25 trillion within the next six years.

Coutts refers to an extract from his firm’s Pro-Crypto November 2023 report, which highlights the growing demand for on-chain verification and authentication services due to the influence of AI. The report also suggests that both human-directed and autonomous AI agents could leverage smart contract platforms for value exchange, leading to significant growth in the sector.

To assess the impact of AI, Coutts introduces an “AI growth factor” that adds 10% to the annual growth rate beginning in 2026. Although the initial effect is modest, by 2030, AI agents could make up more than 40% of the total daily active users (DAU). As a result, the blockchain assets would experience astronomical valuations, benefiting from the transaction fees generated by the increasing number of AI agents.

Coutts emphasizes that even if the report’s predictions are only partially accurate, the combined market capitalization of smart contract platforms would still witness tremendous growth. He explains that projections based on historical regressions are not indefinitely sustainable, but the network value tends to increase exponentially as the network expands. Even if his own estimate is only 25% accurate, it would still result in a 4x to 5x increase from the current market cap levels.

As of now, the total market cap of top layer-1 crypto projects stands at $1.88 trillion, according to CoinGecko.

Please note that the opinions expressed in this article are not investment advice, and investors should conduct their own research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. Transfers and trades are done at one’s own risk, and any losses incurred are the individual’s responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it serve as an investment advisor.