Pantera Capital expects altcoins with proven protocols to outperform in upcoming cycle

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Crypto funding agency Pantera Capital says tokens with promising underlying protocols and product market match are set to outperform within the upcoming cycle.

In line with a brand new report from Pantera Capital, tokens with promising underlying protocols and a demonstrated product-market match are anticipated to outperform within the upcoming cycle “simply as one would count on throughout different asset courses like equities.”

Though Pantera Capital didn’t identify particular tokens, the agency stated that over the long run, token choice might be “paramount as a result of outperformance might be on a case-by-case foundation and never essentially in a sure sector or primarily based on fickle, short-lived speculative narratives.”

“Our thesis is that altcoins underlying protocols which have product market match and are producing actual revenues with sturdy unit economics will carry out finest within the coming cycle, simply as one would count on throughout different asset courses like equities.”

Pantera Capital

Pantera Capital’s managing accomplice, Paul Veradittakit, additionally revealed key predictions for 2024, spanning Bitcoin, decentralized finance (defi), and tech bridges. Within the checklist, Veradittakit famous that Pantera anticipates Bitcoin’s renaissance pushed by the fourth halving scheduled for April, institutional traders’ approval of spot Bitcoin exchange-traded funds (ETFs), and developments in programmability options.

Past Bitcoin itself, the agency expects the expansion of defi on the Bitcoin blockchain, with complete worth locked on the platform doubtlessly rising to 1-2% of Bitcoin’s market cap.

“On this course of, many Ethereum DeFi practices are more likely to be transferred and ‘naturalized’ on Bitcoin, such because the current rise of BRC-20 inscriptions and concepts comparable to staking like Babylon’s L2.”

Pantera Capital

Moreover, Pantera anticipates a transition from finance to social experiences in web3, marked by experiments in tokenized social interactions and the emergence of bridges connecting conventional finance with defi.

Having doubtlessly weathered probably the most difficult part of the bear market, Pantera Capital concludes that the trade has now turned a web page on a collection of bankruptcies witnessed over the previous eighteen months, including that crypto “is not solely about financialization, however fairly a broader concept of how we redefine shopper, social, and developer experiences utilizing blockchains.”

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