Following the upcoming development in the cryptocurrency industry, real-world asset tokenization, Chainlink creator Sergey Nazarov highlighted the importance of this new crypto buyer group.
According to Chainlink founder Sergey Nazarov, the current cryptocurrency market cycle is distinct because of the volume of new investors joining the market. This could accelerate the adoption of real-world asset tokenization more quickly than the industry had previously predicted, Nazarov said in a recent interview.
In an interview with Bloomberg on February 28, Nazarov stressed that new players in the cryptocurrency space go beyond ordinary consumers who react to stories in the media about volatile cryptocurrency prices. He clarified that the new purchasers originate from every facet of the international banking system:
The global financial system, which is a sizable group of net new purchasers, is the answer to the issue of who the net new buyers in this cycle are.
With more than 200,000 BTC, the US government is among the biggest bitcoin holders, according to a report in October 2023. As of the time of publishing, this is valued at about $12.4 billion. Nazarov went on to say that the recently authorised Bitcoin exchange-traded fund (ETF) products are only the start of easier ways for money to join the market.
The Bitcoin ETF is merely an introductory offering, he said, that gives the world financial system access to fundamental payment and investment rails for Bitcoin within frameworks that suit them. Nazarov predicts that the next big trend in the cryptocurrency sector will be the tokenization of real-world assets.
“The next phase is asset tokenization, where banks create assets to compete with ETFs or to obtain some of the capital after they observe all these inflows into ETFs,” he said. The amount of money entering the cryptocurrency space has increased dramatically since the approval of Bitcoin ETFs on January 10th, not only for Bitcoin but for the entire market.
It was reported on February 26 that institutional investors have poured $598 million into cryptocurrency investment products in the preceding seven days.
Pav Hundal, lead analyst for the cryptocurrency exchange SwyftX, stated that the communities endorsing the projects were the driving force behind the current surge in meme coin values.
A forthcoming improvement to Shibha Inu’s primary network would be closely monitored, he added. “Given the size and fervour of their groups, we anticipated that Shib and Doge would move swiftly. In addition, he said, “We’re keeping a careful eye on the effects of upcoming changes to Shib’s mainnet, which will begin burning tokens on transactions.”