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Crypto's Lollapalooza Effect

Primers

Executive Summary

 

  • Ten months after the FTX debacle, we believe crypto is in the early phases on a new cycle.

  • While the asset class is up by more than 65% year-to-date (YTD),1 we're convinced that there is a number of positive factors converting for digital assets.

  • In our opinion, this hasn’t been fully appreciated by investors yet.

  • These factors consist of reassuring long-term trends and shifting short-term forces that are adding up to make the current moment a rare and unique opportunity for long-term investors to start allocating to crypto.

 

1) Major networks are on the path to reach billions of users

  • Emerging digital store of value: the number of addresses holding BTC for the long-term accounts for a vast majority of the circulating supply.1

  • Security: the network’s hashrate continues to reach new highs.2

  • Scalability: Lightning Network significantly enhances BTC’s use as a

    medium of exchange.

  • New use cases:

    • Taro assets and stablecoins.

    • Ordinals and Inscriptions.

    • NFTs and BRC-20 tokens.

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