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Cryptocurrency Industry Recovering from Crypto Winter Faster Than the Internet Has Recovered from the Dot-Com Crash: Architect Partners
The digital assets sector is entering a phase of significant growth and is in much better shape than it was two years ago, investment bank Architect Partners said in a quarterly report released last week.
The cryptocurrency sector has risen in value by more than $750 billion in the first half, the company said. The growth was driven by a surge in the value of crypto tokens of more than $700 billion, successful launch of bitcoin spot (BTC) exchange-traded funds (ETFs) in the United States, which generated more than $15 billion, and the appreciation of publicly traded cryptocurrency companies, which generated another $11 billion.
Cryptocurrencies and the Internet, both disruptive technologies, have very similar characteristics, the report says, noting that the cryptocurrency market is recovering from the so-called cryptocurrency winter much faster than the Internet recovered after the dot-com bubble burst in 2000.
“Ironically, cryptocurrencies were the stepchildren of the Internet,” but are now surpassing their predecessors and “exceeding the value of the Internet in the same portion of their respective life cycles,” Architect said.
Trading activity is also on the rise, with the value of transactions announced in the second quarter hitting an all-time high of $2.7 billion, surpassing the combined value of the previous eight quarters, the report noted. Architect said that confidence and momentum in the markets have returned, with the crypto winter behind us, and “professionalism, risk management, ethical behavior, and ‘doing things right’ are finally becoming the core tenets of cryptocurrency.”