John Wu, president of Ava Labs, stated in a recent Bloomberg interview that the crypto space has experienced a sort of revival in recent weeks. He attributes the bullish market sentiment to the collapse of Silicon Valley Bank (SVB), as it served as a reminder of the mistrust that many feel in regards to large financial institutions. Wu believes this realization has reinvigorated interest in the crypto industry among previous crypto advocates.

He also noted that, although activity has increased greatly in the crypto market, the number of new crypto players that have been entering the market is still limited and coins are mainly being bought and traded by crypto native people. Wu believes that the crypto market needs institutional buyers to sustain its positive momentum, as there must be real-world use cases for more serious investors to be drawn in.

In his opinion, massive price increases in the crypto market are likely to remain impossible without a more global penetration, which would vastly expand the portfolio and variety of investors that cryptocurrencies can court.

The events of the past year have thus opened up a key conversation within the crypto industry – where to go next in terms of widespread institutional adoption? Institutionalized investors are growing more aware that, as Wu argues, real-world use cases of cryptocurrencies are both available, and necessary in order to push the industry from its current level of success to something more substantial.

If institutional investors can be secured as a more permanent presence in the crypto market, it is likely that the bullish sentiment that many are feeling will be a long-term trend, rather than a momentary spike. Wu and others agree that the industry needs to focus on legitimate usage cases where the advantages that digital tokens offer instead of just being a vehicle for speculation. This will encourage further institutional-level engagement and is likely the key to secure crypto’s meteoric rise in price.



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