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The latest market slump has shifted many people’s perceptions on Bitcoin. Consider this: between April and May, the values of BTC and ETH fell by 60%, while DeFi assets fell by 70%. As a result, many retail traders have begun to wonder, “Is this the end of the bull run?” Will it meet the positive price forecasts of many analysts?
Vance Spencer, co-founder of Framework Ventures, was quick to recognise this, saying:
“NO, I don’t think this is the end of the bull run. I actually have trouble defining what a bull run is in crypto. I think there’s a bull run in any given time or place”
He also included an intriguing point about Bitcoin and Ethereum. Concerning the former, he believed that Bitcoin had a 10-year adoption cycle that would continue. While for ETH, he emphasised that it is still in its early stages, so volatility and drawdowns are unavoidable.
According to Spencer, the market has massively underestimated the amount of cash that is poised to leave institutional investor circles. He stated, ”
“The resounding sense that I get is that people are underestimating the amount of capital that’s coming off the sidelines by probably 1 to 2 orders of magnitude,” Spencer said.
Ethereum and Bitcoin are the two cryptos that are of prime interest for large investors and are both no where “near a top”.
He further added:
“Ethereum has a lot more to be told in a world where there is not hyperinflation or there are not all these crazy things happening than [bitcoin’s story]. It’s very difficult to look at ETH even DeFi through cynical lense. You have to be optimistic.”
Looking at the ETH/BTC ratio, one can see that it tripled in the last 6 months.
ETH 2.0 upgrade should also play a major role in expanding decentralized finance (DeFi). Right now, many institutions are probably aware of the opportunities present in Defi but may be hesitant to jump into it. Spencer added:
“The innovation cycle in DeFi is happening in real-time.”
How far can DeFi reach?
Vance Spencer forecasted the expansion of decentralised finance (DeFi); presently valued at $40 billion, he claimed that it might ‘add another zero in a year from now.’
Here’s what he forecasted over the next one to three years:
“In the next 2 years, we’ll get around $100billion. Afterwhich, we’ll see an acceleration from 100 to 500 to a trillion mark.”