- Venture investor Pantera Capital predicted a bullish trend in the cryptocurrency market.
- Experts noted the industry’s resilience to negative events and bitcoin’s undervaluation.
- Pantera Capital believes that DEX have significant potential for further development.
The cryptocurrency market is on the threshold of the fourth cycle, which will continue for the next 18 or 24 months. Pantera Capital experts came to this conclusion.
With all the negative things that happened in 2022 and 2023, an important theme now is the absence of bad things.
Read our Feb Blockchain Letter:
- Revisiting Bitcoin Programmability
- Protocols With Fundamental Traction
- Bitcoin Halving Impact
and more.https://t.co/AMRLt8OVV8
Pantera Capital (@PanteraCapital) February 20, 2024
In their statement, the analysts talked about the crypto market’s resilience in the face of challenges, which Pantera Capital attributed to the collapse of Terra Luna and Celsius, the bankruptcy of crypto exchange FTX and the closure of Silicon Valley Bank. Experts noted the transition from a phase of “insanely bad events” to a positive climate and gradual recovery of the industry.
About bitcoin
After analyzing the history of bitcoin’s creation and development, experts found that it continues to be one of the most undervalued assets in the world. Meanwhile, bitcoin has a number of features that make it a unique cryptocurrency, experts concluded:
- the daily trading volume is $26 billion – 250% more than Apple;
- the asset is owned by more than 220 million people in the world;
- Bitcoin’s market capitalization exceeds $900 billion, which is 60% more than Visa;
- the processing power of the bitcoin network is 500 times more powerful than the fastest computer.
Recall that in 2013, the fund’s CEO Dan Morehead invested nearly $2 million in bitcoin. He purchased it at $65 per coin. Now Morehead’s investments are valued at more than $1 billion.
Pantera Capital expects bitcoin to spread globally as an asset and as a technology in Latin America, Africa and Asia:
“If Wall Street’s financial system is not built for bitcoin, then bitcoin will have to build a financial system for itself.”
After studying previous bitcoin halving cycles, experts have concluded that reducing the reward for mining from 6.25 BTC to 3.125 BTC per block will increase the price of the asset in the long term. In April 2024, it will be $35,448, but in 2025 it will exceed $147,000.
On the regulation of the crypto market
The report talks about the growth of institutional adoption, helped by regulatory clarity and the approval of spot bitcoin-ETFs in January 2024. Experts also mentioned the refusal to classify Ripple (XRP) as a security and Grayscale’s victory over the US Securities and Exchange Commission (SEC) in court.
According to experts, these developments are harbingers of the regulatory environment and acceptance of cryptocurrencies in the United States and other countries around the world.
On DeFi’s development potential
Shifting the focus to Ethereum, Pantera Capital emphasized the importance of blockchain for the development of decentralized finance (DeFi). Historically, such protocols have accounted for 8% to 50% of Ethereum’s market capitalization. The largest DeFi solution continues to be Uniswap, a decentralized exchange (DEX) with a capitalization of over $5.5 billion.
“Since the collapse of FTX, confidence in centralized exchanges has plummeted. Traders are increasingly moving to decentralized trading platforms, where assets are much safer to store and order books are more transparent,” the report said.
Pantera Capital believes DEXs have significant potential to increase market share. According to analysts, they offer a number of advantages, including flexibility, improved asset control, privacy, security and low commission costs. In particular, the experts noted the prospects for the development of the decentralized exchange dYdX, the TVL of which could exceed $10 billion.
In addition, experts spoke about the technological achievements of the ecosystem, which include the growth of L2-protocols for Ethereum, the development of ZK-rollups and the emergence of modular blockchains. Pantera Capital expects a wide spread of tokenized treasury bonds, which will provide global liquidity, high speed and transparency of settlements.
Recall, earlier in Pantera Capital predicted the growth of bitcoin price to $148,000 in July 2025. We also reported that the fund decided to change the format of investments in crypto projects.
