A closely followed trader and analyst says there’s one sector in the crypto industry that is quietly presenting the biggest opportunity for the market’s next bull cycle.
Pseudonymous trader Kaleo tells his 590,000 Twitter followers that he’s bullish on non-fungible tokens (NFTs), partially because so far, the sector is not on the radar of the regulators.
“One of the reasons I’m most bullish about the NFT space heading into the next bull cycle is that it currently has the least amount of regulatory scrutiny up against it.
Will there be a day when companies like OpenSea and Blur face similar lawsuits to what we’re seeing against Coinbase, Binance, etc.?
Yes.
The total crypto market cap is ~$1.1T.
The total NFT market cap is less than 1% this number, sitting at ~$10B.
On top of that, the total monthly sales volumes for NFTs last month was only $809MM, which is ~0.01% of the total crypto coin market sales volume.
Point being, the SEC has way bigger fish to fry. NFTs aren’t worth their resources – yet.”
Kaleo says that the lack of regulatory scrutiny on NFTs means that there should be less friction in the sector, which he argues equals more growth.
The trader also argues that NFTs are the easiest thing for regular people to understand, which could more easily lead to wider adoption.
“NFTs also have the lowest intuitive barrier to entry for the average person – meaning, people understand the idea of digital collectibles. It makes sense to them a heck of a lot more than buying some random dog coin and praying.
So, while it’s easy to ignore the NFT marketplace because ‘there’s no volume’, you’ll be sidelining yourself from major opportunity next cycle. Everything is boring, until it isn’t.”
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