Although there has been a slight uptrend in the current crypto cycle, with Bitcoin (BTC) hitting a new high above $73,000 in March, it is worth noting that this crypto cycle still looks different from other past cycles.
In particular, unlike previous cycles, which have fostered new inventions, the current period has yet to deliver “transformative technologies” that would normally drive widespread adoption and enthusiasm, according to Blast founder Tyshawn Rockwell, also known by his pseudonym, Bachman.
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Sharing his thoughts during a virtual Q&A session at Foresight 2024 Event In Hong Kong, Backman highlighted several factors that set the current cycle apart from previous ones. According to the expert, this cycle is strikingly different because it lacks the fundamental technological shifts seen in past cycles.
In this regard, Backman reveals that previous stages were marked by innovations such as initial coin offerings (ICOs), decentralized exchanges such as Uniswap, and the emergence of non-fungible tokens (NFTs).
These innovations have spurred new waves of adoption and created new ways for capital to circulate within the crypto space, invigorating the market and fueling bullish sentiment, Backman added.
However, Backman noted that the current crypto cycle has been driven primarily by external financial instruments like exchange-traded funds (ETFs) and market pressures rather than “fundamental” technological advancements.
The influence of ETFs has introduced a different kind of dynamic, with a greater focus on integrating cryptocurrencies with traditional financial markets rather than developing an ecosystem driven by innovation and technology-focused developments.
Discussing the future of NFTs, Backman believes that in order for the NFT market to regain momentum and attract new interest, an innovative “evolution” of current models is needed.
This innovation will need to redefine the value and utility of NFTs, just as the original concept of digital property and art did.
The required innovation is compared to the initial disruption that NFTs caused to traditional fungible tokens, which opened up new investment space and creative possibilities in the crypto industry.
Current cycle performance
Although the current cryptocurrency cycle is different from previous cycles, it is not entirely bad. So far, Bitcoin has reached an all-time high. Additionally, the current cycle has seen the launch of several cryptocurrencies and their rise in popularity.
This is due to the increased involvement of celebrities like social media personality Andrew Tate, former US President Donald Trump, singer Iggy Azalea, etc. in the crypto community and the emergence of instant token launch platforms like pumpdotfun.
Examples of popular meme coins generated by this cycle include NEIRO, BOME, DADDY, MOTHER, TRUMP, and more.
Moreover, the cycle also saw a major shift in the regulatory sector. Recently, XRP scored a victory in the legal saga with the US Securities and Exchange Commission (SEC).
Prior to that, Ethereum also received approval for its own spot ETFs in the US, Suggesting that the regulator now sees ETH as a commodity, not a Security.
Featured image created using DALL-E, chart from TradingView
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