This Crypto Cycle Is Different From the Past Ones, and That's Okay

Particularly, unlike previous cycles, which bolstered new inventions, the current period is yet to introduce “transformative technologies” that typically drive mass adoption and enthusiasm

Despite a slight bullishness in this crypto cycle, with Bitcoin (BTC) reaching a new peak above $73,000 in March, this cycle appears to be distinct from past cycles.

Blast founder Tieshun Roquerre, also known by his pseudonym, Pacman, highlighted several factors that differentiate the current cycle from previous ones.

According to Pacman, this cycle is notably different due to the absence of the fundamental technological shifts observed in past cycles.

Sharing his insights during a virtual Q&A session at the Foresight 2024 event in Hong Kong, Pacman highlighted several factors that differentiate the current cycle from previous ones. According to the expert, this cycle is strikingly different because it lacks the fundamental technological shifts seen in past cycles.

Elaborating on this, Pacman discloses that the previous phases were marked by innovations such as initial coin offerings (ICOs), decentralized exchanges like Uniswap, and the emergence of non-fungible tokens (NFTs).

Pacman added that these innovations spurred new waves of adoption and created fresh avenues for capital rotation within the crypto space, energizing the market and fueling bullish sentiments.

However, Pacman pointed out that the current crypto cycle has been primarily driven by external financial instruments like exchange-traded funds (ETFs) and market pressures rather than “intrinsic” technological progress.

The influence of ETFs has introduced a different kind of dynamic, focusing more on integrating crypto with traditional financial markets rather than advancing an ecosystem driven by innovation and tech-centric developments.

In discussing the future of NFTs, Pacman believes that for the NFT market to regain momentum and capture new interest, an innovative “twist” on the current models is necessary.

This innovation would need to redefine the value and utility of NFTs, much like the original concept did for digital ownership and art.

He compares the needed innovation to the initial disruption caused by NFTs on traditional fungible tokens, which opened up new investment space and creative possibilities in the crypto industry.