Markets
Cryptocurrency Industry Recovering From Crypto Winter Faster Than Internet From Dot-Com Crash: Architect Partners
The digital asset industry is entering a major growth phase and is in a much better position than it was two years ago, investment bank Architect Partners said in a quarterly report released last week.
The value of the crypto industry soared by more than $750 billion in the first half of the year, the company said. The growth was driven by an increase in the value of crypto tokens worth more than $700 billion, the company said. successful launch bitcoin spot (BTC) exchange-traded funds (ETFs) in the United States, which attracted more than $15 billion, and the appreciation of publicly traded cryptocurrency companies, which added another $11 billion.
Crypto and the internet, both of which are disruptive technologies, have very similar characteristics, the report said, noting that the cryptocurrency market is recovering from the so-called crypto winter much faster than the Internet’s recovery after the dot-com bubble burst in 2000.
“Ironically, cryptocurrency was the stepchild of the internet,” but it is now surpassing its predecessor and “exceeding the value of the internet at the same stage of their respective life cycles,” Architect said.
Deal activity is also on the rise, with the value of announced deals in the second quarter reaching a record $2.7 billion, surpassing the combined value of the previous eight quarters, the report noted. Architect said that market confidence and momentum are returning as the crypto winter has passed, and that “professionalism, risk management, ethical behavior, and ‘doing the right thing’ are finally becoming the fundamentals of crypto.”