Anika Begay
While there has been a slight uptick in the current cryptocurrency cycle, with Bitcoin (BTC) hitting a new high above $73,000 in March, it is worth noting that this cryptocurrency cycle still appears to be different from other past cycles.
Notably, unlike previous cycles, which have championed new inventions, the current period has yet to usher in “transformative technologies” that typically drive mass adoption and excitement, according to Blast founder Tieshun Roquerre, also known by his stage name Pacman.
How different is this cryptocurrency cycle from previous ones?
Sharing his insights during a virtual Q&A 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.
Digging deeper into this aspect, Pacman reveals that the previous phases were characterized 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 have spurred new waves of adoption and created new opportunities for capital rotation in the cryptocurrency sector, energizing the market and fueling bullish sentiment.
However, Pacman stressed that the current cryptocurrency cycle has been driven primarily by external financial instruments such as exchange-traded funds (ETFs) and market pressures rather than “intrinsic” technological progress.
The influence of ETFs has introduced a different type of dynamic, focusing more on the integration of cryptocurrencies with traditional financial markets rather than on the development of an ecosystem driven by innovation and technology-focused developments.
In discussing the future of NFTs, Pacman believes that for the NFT market to regain momentum and capture new interest, an innovative “twist” from current models is needed.
This innovation should redefine the value and utility of NFTs, just as the original concept did for digital property and art.
He compares the innovation required to the initial revolution caused by NFTs on traditional fungible tokens, which opened up new investment spaces and creative possibilities in the cryptocurrency industry.
Current cycle performance
Although the current cryptocurrency cycle is different from previous ones, it is not all bad. So far, BTC has reached a new all-time high. Additionally, the current cycle has seen the launch and popularity of several meme coins.
This is due to the growing involvement of celebrities such as social media personality Andrew Tate, former US President Donald Trump, singer Iggy Azalea, and so on in the cryptocurrency community, and the debut of instant token launch platforms such as pumpdotfun.
Among the most popular meme coins born from this cycle are NEIRO, BOME, DADDY, MOTHER, and TRUMP, among others.
Furthermore, the cycle has also seen a notable shift in the regulatory sector. Just recently, XRP won a legal saga with the U.S. Securities and Exchange Commission (SEC).
Prior to that, Ethereum had also gotten its spot ETFs approved in the United States, suggesting that the regulator now sees ETH as a commodity, not a certainty.
Featured image created with DALL-E, chart from TradingView
