Former Goldman Sachs executive Raoul Pal says the strength of the crypto market’s bull run could depend on one key factor.
In a new interview with Pomp Investments founder Anthony Pompliano, Pal says the crypto market could soar this cycle with an increase in real-world blockchain use cases.
He also says that re-engagement by past digital asset holders could also boost crypto’s bullishness.
“Thinking about the crowd that got financialized in 2020, mainly the millennial crowd, there are 110 million Coinbase accounts. And when I checked six months ago, only nine million were active. So speaking to the guys at Coinbase, they’re like, yeah, you know in normal activity it’ll get to 35, 40 million and the top will grow as well. So there’s a lot of money still to come in if people who participated last time around have that interest, still have PTSD, will come back in…
I also have a feeling the applications layer of blockchain is going to bring in a lot more use cases. So I’m thinking of this cycle as maybe the ‘everything, everywhere all at once’ cycle, where people have different unlocks for NFTs (non-fungible tokens) or inscriptions or different unlocks for smart contracts and some of the other things and they can use it for everything from whether it’s ticketing to real-world assets.
So it just depends on how far the application’s leg goes. If the application leg doesn’t make much progress this cycle, then you’re dead right, we’ll see rebalancing.”
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