Given the current standing of the crypto market, many believe that we are seeing the dotcom bubble all over again. Bitcoin has been the only one that has shown a bit of stability in recent days. In fact, top altcoins lost a significant value over the last few days. Ethereum, for instance, lost around 45% of its value just in the last 30 days. There are also other altcoins that suffered a similar fate.
But of course, there are those that are showing optimism despite the bearish crypto market. Changpeng Zhao who is the CEO of Binance thinks that there is a massive room for growth for the crypto market. It is the complete opposite of what Ethereum’s co-founder, Vitalik Buterin had in mind saying that the industry won’t see 1,000-fold gains in the future. Buterin said that “The blockchain space is getting to the point where there’s a ceiling in sight. If you talk to the average educated person at this point, they probably have heard of blockchain at least once. There isn’t an opportunity for yet another 1,0000-times growth in anything in the space anymore”.
Still Room for Growth
For Changpeng Zhao, he thinks that there is still room for growth for the crypto market. However, it doesn’t come overnight. He believes that this growth will naturally happen once top cryptocurrencies such as Bitcoin and Ethereum increase mainstream adoption. He mentioned that: “I still disagree with this. I will say ‘crypto will absolutely grow 1000x and more!’ Just reaching USD market cap will give it close to 1000x (that’s just one currency with severely restricted use case), and the derivatives market is so much bigger”.
According to Changpeng Zhao, a $200 trillion market cap for the industry will involve cryptocurrencies being used as the main source of payment. He believes that every merchant will be utilizing cryptocurrencies on their credit cards. And also, wealthy individuals will be holding trillions of dollars in cryptocurrencies.
Right now, the crypto market is still aiming towards adoption. In fact, Vitalik Buterin even mentioned before that he thinks that though Bitcoin ETF can help the crypto market in the short term, adoption is what is really needed by the industry.
Entry of Institutional Investors
Many are still looking forward to seeing institutional investors to enter the picture. Many believe that this year will be the perfect time for them to enter the crypto market especially after having regulatory clarity.
For instance, a Bitcoin ETF is believed by many as the thing that can help bring serious money into the market. However, there were already a good number of rejections. The Winklevoss Twins’ Bitcoin ETF application has already been denied for the second time around. And also, there were nine Bitcoin ETF applications that followed that were also denied by the US Securities and Exchange Commissions.
Is it still possible to see the crypto market to recover? Of course, there are those who think that a lot of altcoins will be left out in the process even if the crypto market recovers from its current bearish trend.