CZ's judgment is supported by data: Why the crypto market is only just beginning

CZ recently stated that the cryptocurrency market size is very small but has huge potential. Currently, it’s just the beginning. This judgment may sound like industry jargon at first glance, but when combined with the actual market changes in 2025 and the emerging new trends in 2026, it becomes clear that there is concrete data support behind it. The small size is a fact, but the argument that the potential is large is being validated by reality.

Market Size Benchmark: Why Say “Very Small”

Although the total market capitalization of cryptocurrencies has already surpassed the trillion-dollar level, it is indeed insignificant compared to traditional financial markets. According to the latest news, on-chain liquidity in crypto is about ### trillion dollars, while the global stock market total market cap exceeds @E5@ trillion dollars, and the daily trading volume of the foreign exchange market reaches hundreds of trillions of dollars. From this perspective, CZ’s statement that the “scale is very small” is an objective fact—cryptocurrencies account for less than 2% of the global financial system.

A more intuitive comparison is the penetration rate of application scenarios. Based on 2025 data, the global population holding cryptocurrencies is about 320 million, accounting for only about 4% of the total global population. In other words, 96% of people have not yet been exposed to crypto assets. This low penetration rate itself is the best proof of the growth space.

Where Does the Potential Show?

New Tracks Are Opening

An important change in the 2025 market is the shift from retail speculation to institutional dominance. According to reports, institutional funds continue to flow in, the correlation between BTC and the S&P 500 has increased, and policy and ETF capital flows have become more important references than candlestick charts. This indicates that cryptocurrencies are moving from the periphery to the core of the financial system.

More importantly, the emergence of new application scenarios is worth noting. Several key directions mentioned in related news include:

• RWA (Real Asset Tokenization) moving from concept to a hundred-billion-dollar market
• AI and payments officially merging, with blockchain becoming the foundational layer of the smart economy
• Continuous innovation in privacy technology, DeFi, on-chain identity, and other fields

These are areas that are not yet fully developed at the technological level, representing that the application boundaries of cryptocurrencies are still expanding.

Policy and Capital Environment Improving

The beginning of 2026 has already sent clear signals. According to the latest news, the Trump administration appointed a cryptocurrency policy advisor, and the US is redefining its attitude towards the crypto industry. This policy shift means that compliance frameworks are being implemented, and conditions for institutional capital inflows are forming.

CZ’s role in this process is also noteworthy. Related information shows that after his release from prison, his followers on X increased from 6.8 million to 10.5 million, with an average daily increase of 37%. This rise in influence reflects the industry’s renewed recognition of the legitimacy and prospects of cryptocurrencies.

Why Say “Just the Beginning”

The core logic of this judgment is that: technology is far from fully developed, application scenarios are still in early stages, and there is huge room for growth in both the number of market participants and the scale of funds.

Technological Level

According to related news, new technological directions such as RWA, AI + payments, privacy mixers, etc., have just entered the commercialization stage. These are not concepts but projects already being implemented, though market penetration remains very low. Taking RWA as an example, although called a “hundred-billion-dollar market,” compared to the global asset market worth hundreds of trillions, it is still a very small beginning.

Application Scenarios

Data from 2025 shows that the main applications of cryptocurrencies are still concentrated in trading and investment. The penetration of physical application scenarios such as payments, identity verification, and supply chain remains very low. This means that when these applications become truly widespread, the market size will experience a qualitative leap.

User Base

The global 4% holding population indicates there is still 96% growth potential. As cryptocurrencies move from niche to mainstream, from tech enthusiasts to ordinary consumers, the market size growth will be exponential.

Key Observations for 2026

According to the latest news, 2026 may become a turning point. Both Elon Musk and CZ have hinted that this could be the “super cycle” ignition point, for reasons such as:

• The start of Bitcoin’s “institutional long-term bull market,” potentially breaking the four-year cycle theory
• Regulatory frameworks being implemented, with Wall Street funds continuing to flow in
• New technological applications moving from concept to market
• Policy environment shifting from opposition to inclusion

All these point in the same direction: cryptocurrencies are moving from the edge to the mainstream.

Summary

CZ’s statement that the crypto market size is very small is an accurate description of the current situation. But the judgment that “huge potential” and “just the beginning” is not empty optimism; it is supported by concrete data. From market size benchmarking, new tracks opening, policy environment improving, to user base expansion, the cryptocurrency market is still in its early stages. 2026 could be a key year for this potential to turn into reality, but it requires understanding that this is not a quick wealth game, but a long-term, structural market transformation.