Crypto Industry Won’t See Another “1,000-times Growth” Again: Ethereum Co-Founder
The meteoric rise in the value and popularity of cryptocurrencies and blockchain has not been without its fair share of contrasting opinions. On the one hand are optimists who believe that cryptocurrencies will change the world. On the other hand, are pessimists with a general sense of doubt and hesitancy about the capacity of digital currencies to grow beyond current levels.
Depending on which side of the present divide you stand, you will agree or disagree with what Vitalik Buterin had to say. The Ethereum co-founder shocked many when he stated that the fast-growing crypto and blockchain industry has now peaked and will transition from “just people being interested” to actual applications.
Buterin’s reasons are clear. The industry has been talking about cryptocurrency and blockchain for a while now, and awareness has expanded significantly over the years. Therefore, it’s high time all the words are represented by action.
“If you talk to the average educated person at this point, they probably have heard of blockchain at least once. There isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore,” Buterin said in an interview with Bloomberg at an Ethereum and blockchain conference in Hong Kong.
So far, developers have focused on marketing and increasing awareness to encourage mass adoption. Now that they have succeeded in getting many everyday users warmed to cryptocurrencies, achieved significant growth price and market capitalization, Buterin believes that industry growth will soon grind to a halt.
Well, if you have been following industry news and trends, you may argue that the industry spluttered to a halt more than seven months ago. The total market capitalization of all cryptocurrencies, which peaked in January at $828 billion, has declined very much over the past months.
Things rapidly went downhill since January, with May being the only exception. Currently, cryptocurrencies are worth less than $200 billion for the first time since 2017. The current figure of $198.8 billion is the lowest value since November 2017.
On a more positive note, the current figures are still higher than those in the first quarter of 2017 when the market was valued at just around $17-20 billion. Then, cryptocurrencies like bitcoin and ethereum were exchanged for less than $1,000 and $12 respectively.
It is not yet clear when the current bloodbath will stop. But there’s no denying that a massive crypto price rise is still possible. The crypto market is a space where things change in a flash and 24 hours is a very long time.