The former research director of Grayscale Investments said he wanted to start his own firm after witnessing how much the crypto market has evolved over the past few years, highlighting some altcoin projects.
Phil Bonello drew attention to trends in the cryptocurrency space
Phil Bonello, who has conducted research at the famous digital asset firm Grayscale, said in a recent interview that Bitcoin used to dominate the cryptocurrency space, and then this dominance shifted a little to Ethereum. But he said that in the past year and a half, many things have been built, especially from decentralized finance (DeFi) and NFTs to games, and now the metaverse is popular.
While decentralized finance protocols like Compound (COMP) and Maker (MKR) exploded last summer, crypto traders; now celebrates the arrival of DeFi 2.0 with the recent success of liquidity protocols such as OlympusDAO (OHM), Tokemak (TOKE), MIM. Bonello sees the mini-boom in these more nuanced DeFi protocols as “the next iteration of financial engineering,” and uses the following phrases:
For example, we see derivatives being built on automated market makers like Uniswap. Then we see structured products layered on top of these derivatives. And then we see completely new models for lending and borrowing.
Famous executive highlighted NFT and metaverse-focused altcoin projects
While DeFi 2.0 promises interesting opportunities, Bonello also sees new risks. He is more interested in watching the growth of derivatives in the decentralized space. “If you look at the current landscape, derivatives in the central market probably have four times more volume than the spot market. Therefore, we are very interested in seeing this trend move to decentralized applications as well.”
Another trend on its radar has been the rise of non-fungible tokens, which have become “a representation of internet culture”. However, Bonello focuses more on what NFTs can do for user ownership and the impact they have on gaming and content experiences. As an example, NFT points to the rise of the gaming metaverse Axie Infinity (AXS). cryptocoin.com As we also reported, AXS, the governance token of the blockchain-based game, increased by 101,385.2 percent last year.
Bonello considers the “play-to-earn/P2E” model a “revolutionary concept” and says “this trend is just getting started.” Indeed, the price of metaverse-linked NFT game tokens such as Decentraland (MANA), The Sandbox (SAND), Illuvium (ILV) and Star Atlas (ATLAS) have been rising since Facebook rebranded its corporate name Meta. Bonello also thinks music NFTs will flourish.
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