Messari analysts believe crypto is inevitable and we are going to see massive adoption, when all problems will be solved
2021 was the year of institutional investors that propelled Bitcoin’s run to near $70,000. The bullrun would not be possible without huge inflows from institutional investors like Paradigm, a16z and even 3AC, according to the Messari report. But in 2022, the situation has changed dramatically.
If during the last bullrun investors were aiming at the right exit from the market, today we see the opposite situation: institutions are looking for potential entries that will maximize their profits on the market.
In their report, Messari analysts and experts believe that institutions are returning to the cryptocurrency industry, despite the low or non-existent profitability of some funds. The same scenario was seen in 2018, when institutions made their first purchases, when Bitcoin was trading at $10,000 or lower.
Considering that BTC lost over 70% of its value, purchasing the digital gold now is similar to buying the asset back in 2018.
Other topics covered by Messari
Besides the potential behavior of institutional investors, Messari touched on other topics such as the decoupling of the cryptocurrency industry, the potential for market growth, and confidence in alternative L1s.
In terms of different segments of the industry, Messari experts believe we are seeing the separation of DeFi, NFT and other sub-segments of the digital assets industry considering their massive growth and independence.
Analysts also believe that NFT will be able to fuel the adoption of cryptocurrencies in the future once the industry infrastructure scales up and brings more tools for creators and management of the reputation, given its current state.
Decentralized finance, on the other hand, is yet to solve technical and security issues to become more usable in the future.
