Cryptocurrency and blockchain market will never experience another “1 000 times growth”, as stated by Ethereum (ETC) co-founder Vitalik Buterin in a recent interview with Bloomberg.
The co-founder of Ethereum Network noted at the conference in Hong Kong, that, in his opinion, the growth of the cryptocurrency and blockchain industry has already reached its “ceiling”, while moving from “just people being interested” to the stage of “real applications of real economic activity.”
Vitalik Buterin explained that the period of the explosive growth in the sphere is coming to an end, because the superficial awareness about the industry has already grown to a very significant extent and thus reached plateau stage:
“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.”
According to Buterin, the initial strategy employed by the crypto community in the past six or seven years, which was based on promoting the widespread adoption of crypto coins and resulted in a rapid surge in market price and capitalization of many cryptocurrencies, is now “getting close to hitting a dead end”.
Market capitalization of almost all cryptocurrencies has, indeed, seen a dramatic decline. Whereas last January the total market cap of all cryptocurrencies reached $828 000 000 000, it has shrinked by more than four times to just $198 800 000 000 by now.
Despite such a significant meltdown in the course of this year, the current market indicators still exceed those of the early 2017, when total crypto market capitalization was barely reaching $20 000 000 000. Roger Ver recently told Cointelegraph that the recent bear market “feels like the opposite of a crash,” since “BTC is up 58% for the last year, and 1048% for the last two years.”
Last month, Buterin, who was earlier included into the top list of the world’s most influential young people “40 Under 40” by Fortune magazine, shared his vision of the crypto market as being too focused on cryptocurrencies, while “the amount of sustainable usage of blockchain is very low”.