Pantera Capital CEO Dan Morehead says that three overlooked crypto projects are showing impressive strength in the face of an overall downtrend in the digital asset markets.
In a new CNBC interview, Morehead says that he sees cryptocurrency as disruptive technology that will see billions of new users arrive to regardless of short-term volatility in Bitcoin (BTC) and Ethereum (ETH).
“I think the important thing to keep in mind here is crypto is such a disruptive thing that’s going to change so many aspects of our lives over the next couple decades. It’s in a secular bull market and it does occasionally get caught up in these cyclical down drafts of risk assets, but I can easily see a world a few years from now where risk assets themselves might be still struggling but blockchain is back to all time highs and doing its own thing based on its own fundamentals.
And that story is hundreds of millions of people use blockchain today. I think in four or five years it’s going to be literally billions of people. And the way to value things is supply and demand. If you have a billion people that want to buy a fixed number of coins the price probably goes up.”
Morehead, who oversees roughly $4.5 billion in assets under management, says that one sign of the crypto industry’s strength is the number of projects besides Bitcoin and Ethereum that are gaining steam and continuing to scoop up market share.
He names three notable projects that he has his radar on, including Ethereum-based decentralized exchange (DEX) Uniswap (UNI), decentralized application (DApp) platform Near Protocol (NEAR) and DEX aggregator 1inch (1INCH).
“We all are used to using Bitcoin as a proxy for blockchain. There are hundreds of really interesting projects and a lot of them are rallying and have done quite well. A cool stat is the percentage of our entire market, which is not Bitcoin or Ethereum, hit a record yesterday of 43% and over the last five years the average of that was 20%. While Bitcoin and Ethereum are just a bit off their lows, there are a lot of cool projects like Near Protocol, UniSwap, 1inch, that are way above their lows.”
The crypto veteran predicts that at some point soon, crypto assets will break their correlation with the broader financial markets.
“I do think crypto did get caught up in the global macro sell-off of all asset classes and then there was a bit of excess leverage in the system through May and June. I think most of that has been worked out. And in the next few months crypto can start trading independently of risk assets.”
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
Featured Image: Shutterstock/Golden Dayz