In a recent interview, Chainlink founder Sergey Nazarov shared his views on the current cryptocurrency market cycle, noting the uniqueness of this cycle due to the influx of new types of investors. Nazarov emphasized that this diverse group of investors can exceed industry expectations by accelerating the adoption of asset tokenization in the real world. Here are the details…
New buyers are entering the crypto market
Speaking to Bloomberg on February 28, Nazarov noted that new entrants to the crypto market are expanding beyond their retail customers, who often react to price fluctuations in the mainstream media. He emphasized that the new buyers represent various sectors of the global financial system, “The question to ask is what are the net new buyers in this cycle, and the net new buyers are a large group of very, very net new buyers.” Said.
In October 2023, it was reported that the United States government owned more than 200,000 BTC, making it one of the largest holders of Bitcoin, with assets worth approximately $12.4 billion at the time of publication. Nazarov also explained that the recently approved Bitcoin exchange-traded fund (ETF) products are just the beginning, facilitating easier access for funds to enter the market. Nazarov said:
The Bitcoin ETF is an initial offering that allows the global financial system to own the underlying investment rails and payment rails for Bitcoin within the structures they find comfortable for them.
Real-world tokenization will explode, according to Chainlink founder
Nazarov also predicted that real-world asset tokenization will be the next big trend in the crypto market, saying:
The next stage is asset tokenization, where banks see all these inflows into ETFs and then create assets to compete with or acquire ETFs. This is some of the capital.
Some examples of projects focused on real-world toenization are Polymath, Securitize, Untangled Finance, Swarm and Ondo.
Markets are on the rise
Since the approval of Bitcoin ETFs on January 10, there has been an increase in the flow of funds into the crypto sector, not only into Bitcoin but also into the overall crypto market. cryptokoin.com As we reported on February 26, crypto investment products saw a total inflow of $598 million from institutional Bitcoin investment products in the last seven days. Pav Hundal, chief analyst of Australian crypto exchange Swyftx, emphasized that the recent strength in meme coin prices is due to the communities supporting the projects.
He also noted that he is closely monitoring an upgrade to Shiba Inu’s mainnet. As Nazarov highlights, the unique mix of investors entering the cryptocurrency market points to a potential paradigm shift in the industry’s evolution, with real-world asset tokenization poised to become a major driver of future growth and adoption.
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