Jason Guthrie, product director for Asset Manager’s Wisdomtree, says he is optimistic despite the significant lack of hype that usually comes with the execution of crypto bulls.
There were no “really bubble-like use cases that previously normalized these market cycles”, such as initial coin offerings (ICOs), immunity tokens (NFTs), or receivables.
“This time, we’ve continued to look at the collectible value of asset classes. We continue to innovate on companies built on this technology, revenue growth, client-based growth, these candid hat-free, useful use cases,” he said.
The ICO boom kicked off in 2017, raising an estimated $4.9 billion. By 2018, the figure had jumped to $33.4 billion. By 2019, it had fallen slightly above $370 million and never returned to its previous highs.
The NFTS also spent a day and saw a massive surge in popularity in 2020 and continued to grow until it peaked in 2022. The market has since cooled down.
“We think the fact that we are still healthy to drive it is a really, really good sign to drive it,” Guthrie said.
Despite Memecoin’s hype, the market will make this cycle even more mature
According to CoinmarketCap, Crypto’s overall market capitalization reached a new all-time high of $3.71 trillion on December 9th last year, totaling $3.71 trillion.
During this cycle, there is also a growing trend in companies such as video game retailer Gamestop Corporation, with Ukraine probably one of the latest, employing crypto in the Ministry of Finance and reserves.
“I think this is beginning to feel like a more mature market. It’s really settling down to its use case, value props,” Guthrie said.
“I know there was a bit of Mimecoin’s stuff, especially around Solana, but it doesn’t seem as common as the previous hype,” he added.
Related: Bitcoin experiences “shakeout” rather than the end of the four-year cycle: analyst
Memocoin activity surged after President Donald Trump’s Memecoin launched on January 18, when Pump.Fun usage hit an all-time high of $3.3 billion each week.
However, after a series of bad launches and rug pulls, enthusiasm for memo coins fell, killing the profits of investors such as Libra rugs.
Ultimately, Guthrie still believes there are still “innovations to do” and it’s still “very early on,” but the market is mature and has greater sustainability compared to previous cycles.
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