This DeFi trend suggests crypto will reach a market cap in the trillions in the future

According to a fund manager in the space chances are that the crypto market will soon swell to the trillions.

Crypto is on track to hit a multi-trillion-dollar market cap: fund manager.

Spencer Noon, the founder of DTC Capital, believes that the crypto market is on track to reach an aggregate market capitalization in the coming years.

His optimistic sentiment came down to one crucial factor: there are billions of "Crypto dollars coming on-chain to use DeFi." Crypto dollars is a term recently used to describe U.S. dollar stablecoins based on decentralized networks such as Tether, USD Coin, and TrueUSD. "The strong fundamental backdrop to #crypto - which is unlike any bull market previously - is that there are billions of cryptodollars coming on-chain to use #DeFi. Unless that shows signs of slowing, we are on track for a multi-trillion dollar aggregate marketcap for the space."

The strong fundamental backdrop to #crypto - which is unlike any bull market previously - is that there are billions of cryptodollars coming on-chain to use #DeFi.

Eventually, some of the capital stored in crypto dollars may leak into crypto-native assets like Bitcoin or Ethereum, driving them tremendously to the upside due to the fiat amplifier effect.

The amplifier effect suggests that each dollar put into the crypto space results in market capitalization growth much larger than one dollar due to liquidity.

Noon isn't the only one that thinks that the crypto market will hit a market capitalization in the trillions in the coming years.

Raoul Pal, CEO of Real Vision and a Wall Street veteran, recently asserted that there's a good likelihood Bitcoin hits a market capitalization of $10 trillion in the coming decades.

He recently said that he thinks that in the upcoming market cycle, BTC and ETH will race each other to a $1 trillion market capitalization each.