Vitalik says crypto market growth hit the ceiling, adding that it is moving from “just people being interested” to the stage of “real applications of real economic activity.”
10 September, AtoZ Markets – The co-founder of the second-biggest cryptocurrency in the world as per market cap, Ethereum, has once again shared his thoughts regarding the cryptocurrency and Blockchain space.
Vitalik Says Crypto Market Growth Hit the Ceiling
According to Vitalik Buterin, cryptocurrency and Blockchain market have very little chance to see a “1,000-times growth” again. He has spoken at an Ethereum and Blockchain conference in Hong Kong. During the conference, he has stated that the rapid development of Blockchain and cryptocurrency is now hitting a “ceiling.” It is also moving from “just people being interested” to the stage of “real applications of real economic activity.”
Mr. Buterin has also explained that the period of spiking growth in the industry is most likely coming to an end. He referred to the level of superficial awareness about the industry, adding that it has significantly grown and is likely to plateau:
“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.”
As per Mr. Buterin, the initial strategy that has been here around six or seven years in the cryptocurrency community is based on the promotion of coins with the goal of widespread adoption. This strategy has resulted in a massive growth of the price and market capitalization of many cryptocurrencies. However, this approach is now “getting close to hitting a dead end.”
Cryptocurrency market capitalization
Cryptocurrency markets have seen a drastic decline in terms of the total market capitalization of all digital currencies during the current year. Back in January, the total market cap of all cryptocurrencies has reached $828 billion point.
The peak in total market capitalization has then been followed by a steady slide. The rebound has also taken place earlier in May. The overall downtrend has pushed the cryptocurrency market capitalization figure to $198.8 billion, which is the lowest point since early November 2017.
Yet, while cryptocurrency markets have experienced a significant decline in 2018, the current figures are much bigger than those in the beginning of 2017. That time, the total market cap stood at approximately $17-20 billion. Some major cryptocurrencies, such as Bitcoin and Ethereum have been trading below $1,000 and $12, respectively.
Regarding this point, Roger Ver, one of the cryptocurrency enthusiasts, has stated that the recent cryptocurrency 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.”
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