The crypto market will become “much bigger” in the future: Blockchain.com CEO
The crypto market has been consolidating for more than a fortnight now. Bitcoin has been capped between $26k-$27.5k. Similarly, most other large and medium-sized assets have also been consolidated. However, there are several signs on the chain that point towards recovery at this stage.
The stablecoin supply ratio [SSR], for example, has dropped in recent days. In the first week of the month, it created a local peak of 8.09. Now, however, it is down to 7.35. Lower values usually indicate a relatively high supply of stablecoins.
Historically, SSR lows have led to some form of strong recovery if not a complete trend reversal. Thus, it can be argued that the current downtrend points towards the textbook theory of buying pressure gaining steam and hints towards a possible stage for Bitcoin.
Indeed, several companies such as Blockchain.com have borne the fruit of stablecoin adoption. At the Qatar Economic Forum, the company’s co-founder and CEO Peter Smith revealed today that growth in economies such as Nigeria, Ghana and Colombia is “mainly driven by the use of stablecoins.”
Investors usually collect stablecoins and keep them as dry powder. Then, when they feel the time is right to enter the market, they divert them towards assets like Bitcoin and help start a recovery. In fact, as pointed out in a recent article, Africa is one of the fastest growing crypto markets. So the rise in the use of stablecoins here is indirectly a boon for the macro crypto landscape.
Also Read: Here’s How Africans Use Bitcoin Without Internet Access
The strongest survive
Despite being in the midst of the aftermath of crypto winter, significant progress is being made on a daily basis in the space. Companies connect with each other to cater to consumers from different geographical locations. In parallel, the product range is also being diversified. In fact, consumers also continue to accumulate crypto assets under the current conditions.
For example, the number of addresses with 0.1+ coins just hit an all-time high of 4,374,601, which supports the narrative. Keep the ball rolling, Smith so during his interview today,
“I think the crypto market is going to be much bigger in the future than it is today.”
Smith went on to label the companies that survived the winter as “absolutely the strongest.” Specificallyhe so,
“It’s very healthy to have these purge periods throughout the market… If you look at the most valuable companies in crypto a year and a half ago, there are only four of us left. Only the absolutely strongest survive.”
Regulations go hand in hand with growth and adoption. Several nations have made progress on this front recently. In parallel, international agencies have also been working on the same.
Several in the industry such as Brad Garlinghouse feel that bodies like the SEC are “playing foul” and “attacking” all players. In fact, they feel that enforcement actions are “not healthy.” That said, executives have duly acknowledged the need for regulations and feel that regulations must “start with clear protections for consumers.” Commenting on the most unlikely scenario on the regulatory front at the Qatar Economic Forum, Smith said,
“They are probably unlikely to create a UN for crypto regulation.”
“They’re probably unlikely to create the United Nations for crypto regulation,” @blockchain‘s @OneMorePeter #QatarEconomicForum #منتدى_قطر_اليكستادي @jennzaba pic.twitter.com/YysnqJSD25
— Bloomberg Live (@BloombergLive) 25 May 2023
Also Read: Ripple CEO: SEC’s Enforcement Actions ‘Not Healthy’