Chainlink founder Sergey Nazarov recently stated in an interview that the current cryptocurrency market cycle is unique. He pointed to the many new types of buyers entering the market. Nazarov said this may fast-track the adoption of real-world asset tokenization quicker than the industry initially expected.
Speaking to Bloomberg on Feb 28, Nazarov emphasized the recent crypto market participants extend beyond retail customers. These customers typically respond to mainstream media coverage of crypto’s price fluctuations. He explained the new buyers come from all sectors of the global financial system.
“The key question is who the net new buyers are in this cycle,” Nazarov said. “The net new buyers are the global financial system, a very big group of net new buyers.” In Oct 2023, the United States government held over 200,000 BTC. This makes it one of the largest Bitcoin holders, with approximately $12.4 billion worth at the time.
Chainlink: Bitcoin ETF Boosts Market, Asset Tokenization Emerges
Nazarov further explained the recently approved Bitcoin exchange-traded funds (ETFs) facilitate easier access for funds to enter the market. “The Bitcoin ETF offers basic investment and payment avenues towards Bitcoin within structures comfortable for the global financial system,” he stated.
Meanwhile, Nazarov forecasts real-world asset tokenization as the next major crypto market trend. “Banks will create assets to compete with ETFs or get capital as they see inflows into ETFs. This is the next stage of asset tokenization,” he declared.
Since the Bitcoin ETF approval on January 10, funds have surged into the crypto sector. This includes not only Bitcoin but the overall crypto market.
On Feb 26, $598 million entered institutional Bitcoin products over seven days. SwyftX analyst Pav Hundal said recent meme coin strength comes from community support. He will closely watch an upcoming Shiba Inu main network upgrade.
“We expected Shib and Doge to run due to their community size and conviction. But we’re also watching the impact of Shiba’s mainnet upgrade that will start burning tokens on transactions,” he stated.
Related Reading | Dogecoin: Echoes Of 2020 Surge Amidst Growing Adoption
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