Bitcoin
Crypto Industry Recovering From Crypto Winter Faster Than Internet From Dot-Com Crash: Architect Partners
The digital asset sector 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 published last week.
The value of the cryptocurrency industry surged by more than $750 billion in the first half of the year, the company said. The growth was driven by a surge in the value of cryptocurrency tokens, worth more than $700 billion. successful launch of bitcoin in sight (BTC) exchange-traded funds (ETFs) in the US, which raised more than $15 billion, and the rise in value of publicly listed cryptocurrency companies, which added another $11 billion.
Cryptocurrency and the internet, both 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 outpacing its predecessor and “exceeding the value of the internet at the same point in their respective life cycles,” Architect said.
Deal activity is also picking up, with announced transaction value in the second quarter hitting a record $2.7 billion, exceeding the combined value of the previous eight quarters, the report noted. Architect said confidence and momentum in the markets are back, with the crypto winter behind us, and “professionalism, risk management, ethical behavior and ‘doing it right’ are finally becoming the core tenets of crypto.”