2024-8-13 07:00 |
Although there has been a slight bullishness in this current crypto cycle, with Bitcoin (BTC) hitting a new peak above $73,000 in March, it is worth noting that this crypto cycle still appears to be different from other past cycles.
Particularly, unlike previous cycles, which bolstered new inventions, the current period is yet to introduce “transformative technologies” that typically drive mass adoption and enthusiasm, according to Blast founder Tieshun Roquerre, also known by his pseudonym, Pacman.
How Different Is This Crypto Cycle From The Past Ones?Sharing his insights during a virtual Q&A session at the Foresight 2024 event in Hong Kong, Pacman highlighted several factors that differentiate the current cycle from previous ones. According to the expert, this cycle is strikingly different because it lacks the fundamental technological shifts seen in past cycles.
Elaborating on this, Pacman discloses that the previous phases were marked by innovations such as initial coin offerings (ICOs), decentralized exchanges like Uniswap, and the emergence of non-fungible tokens (NFTs).
Pacman added that these innovations spurred new waves of adoption and created fresh avenues for capital rotation within the crypto space, energizing the market and fueling bullish sentiments.
However, Pacman pointed out that the current crypto cycle has been primarily driven by external financial instruments like exchange-traded funds (ETFs) and market pressures rather than “intrinsic” technological progress.
The influence of ETFs has introduced a different kind of dynamic, focusing more on integrating crypto with traditional financial markets rather than advancing an ecosystem driven by innovation and tech-centric developments.
In discussing the future of NFTs, Pacman believes that for the NFT market to regain momentum and capture new interest, an innovative “twist” on the current models is necessary.
This innovation would need to redefine the value and utility of NFTs, much like the original concept did for digital ownership and art.
He compares the needed innovation to the initial disruption caused by NFTs on traditional fungible tokens, which opened up new investment space and creative possibilities in the crypto industry.
Current Cycle PerformanceAlthough the current crypto cycle differs from previous ones, it isn’t completely bad. So far, BTC has hit a new all-time high. Additionally, the current cycle has seen several meme coins launch and gain popularity.
This is due to the increased involvement of celebrities such as social media personality Andrew Tate, former US President Donald Trump, singer Iggy Azalea, and so on in the crypto community and the debut of instant token launch platforms like pumpdotfun.
Examples of the popular meme coins this cycle has birthed include NEIRO, BOME, DADDY, MOTHER, and TRUMP, amongst others.
Furthermore, the cycle has also seen quite a shift in the regulatory sector. Just recently, XRP gained victory over the legal saga with the US Securities and Exchange Commission (SEC).
Before that, Ethereum also gained the approval of its spot ETFs in the US, suggesting that the regulator now sees ETH as a commodity, not a security.
Featured image created with DALL-E, Chart from TradingView
origin »Bitcoin price in Telegram @btc_price_every_hour
Emerald Crypto (EMD) на Currencies.ru
|
