Source: Cointelegraph
Original: “WisdomTree Executive: The Lack of 'Frothy Use Cases' in Cryptocurrency is a Good Sign”
Jason Guthrie, the product head of asset management company WisdomTree, stated that despite the current cryptocurrency bull market lacking the usual market frenzy, he remains optimistic.
Guthrie told Cointelegraph at the Consensus conference that this market cycle has not seen "those frothy use cases that typically drive the market," such as Initial Coin Offerings (ICOs), Non-Fungible Tokens (NFTs), or DeFi lending.
He pointed out, "This time, we see this asset class continuing to accumulate value, with blockchain-based companies consistently increasing revenue, expanding their customer base, and continuing to innovate, rather than relying on use cases that are not particularly practical."
The ICO boom began in 2017, raising an estimated $4.9 billion. By 2018, this figure soared to $33.4 billion. However, by 2019, it had dropped to just over $370 million and has not returned to its previous highs since.
NFTs also enjoyed a brief period of glory, gaining popularity in 2020 and continuing to grow until peaking in 2022, with trading volumes reaching $57.2 billion and total market sales hitting 121.7 million transactions. Since then, market enthusiasm has noticeably cooled.
Guthrie emphasized, "I believe that even without these phenomena driving it, the market remains healthy, which is a very, very positive sign."
According to CoinMarketCap, the total cryptocurrency market capitalization reached a historic high of $3.71 trillion on December 9 last year, with many cryptocurrencies recording significant price increases.
During this cycle, an increasing number of companies, such as video game retailer GameStop Corporation, as well as nations (with Ukraine possibly being the latest example), have begun to incorporate cryptocurrencies into their treasuries and reserves.
"I think this is starting to show more mature market characteristics, truly establishing its use cases and value propositions," Guthrie said.
"I have noticed some meme coin activity indeed emerging in the Solana ecosystem, but it seems far less prevalent than before," he added.
Following the launch of former President Trump's meme coin on January 18, there was a surge in meme coin activity, with the Pump.fun platform recording a historic high of $3.3 billion in weekly trading volume.
However, after a series of failed token launches and "rug pull" incidents, investor enthusiasm for meme coins has noticeably waned, with events like the Libra (LIBRA) rug pull severely impacting market confidence.
Guthrie ultimately believes that, despite still having "a lot of innovative work to do" and the industry being in a "very early stage," the market has significantly matured and shows greater sustainability compared to previous cycles.
Related: AICoin Head: Stablecoin Regulation is the "Next Catalyst" for the Crypto Industry
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