In a recent interview, Chainlink founder Sergey Nazarov highlighted the uniqueness of the current cryptocurrency market cycle, noting the influx of new types of investors. He suggested that this surge in new participants could accelerate the adoption of real-world asset tokenization beyond initial industry expectations.
Speaking to Bloomberg on Feb. 28, Nazarov emphasized that the recent entrants into the crypto market come from diverse sectors of the global financial system, indicating a significant shift in the profile of investors compared to previous cycles. He stated:
“The question to ask is who are the net new buyers in this cycle, and the net new buyers is the global financial system, which is a very, very big group of net new buyers.”
In October 2023, Cointelegraph reported that the United States government held a substantial amount of Bitcoin, with over 200,000 BTC valued at approximately $12.4 billion at the time of publication.
Nazarov also noted that the recent approval of Bitcoin exchange-traded fund (ETF) products is just the beginning of facilitating easier access for institutional funds to enter the market. He explained:
“The Bitcoin ETF is just an initial offering that allows the global financial system to have basic investment rails and payment rails toward Bitcoin within structures that they find comfortable for them.”
Looking ahead, Nazarov predicted that real-world asset tokenization would be the next significant trend in the crypto market. He suggested that banks may create their own tokenized assets to compete with ETFs or attract capital from these markets.
Since the approval of Bitcoin ETFs on Jan. 10, there has been a notable increase in institutional investment in the crypto market. On Feb. 26, Cointelegraph reported that institutional Bitcoin investment products saw inflows totaling $598 million over the previous seven days.
Pav Hundal, lead Analyst for Australian crypto exchange Swyftx, highlighted the influence of community support on the recent strength in memecoin prices. He also mentioned keeping an eye on an upcoming upgrade to Shiba Inu’s network, which is expected to introduce token burning on transactions.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up