The “crypto-winter” seems over. The downtrend in the cryptocurrency market ended brutally on April 2nd on high trading volumes. All signs indicate that the “crypto-spring” is here.
The genuine enthusiasm of the communities, the increase in widespread interest, especially in developing economies, the statements expressed by big investors, whales’ long positions, the amount of on-chain transactions, academic training offers, the amounts continually raised by crypto-funds – virtually everything points in the same positive direction.
By past standards, the reversal appears to have been too fast and dynamic, so one should be cautious because the bullish strength might not be immediately as deep as it seems. Logically, the upward trend should take a bit of time to accumulate confidence, particularly after such a negative year in 2018. Nevertheless, crypto assets continue to trade at a significant discount to their potential, so one should not hesitate too long now.
After officials promised that 2018 would be the year of strict crypto regulations, the outcome is still very permissive. Except for the more stringent and unrelenting imposition of KYC, and the anticipated restrictions on anonymous cryptocurrencies, the trend is for jurisdictions to assist DLT-related businesses to attract them. Legally-speaking, not everything is settled, but the uncertainty regarding the philosophy of regulators is primarily clarified.
Research & development
With both start-ups and projects developed within corporations, we have observed several teams involved in DLT-related businesses recording progress and even delivering on some of their promises. Research is actively occurring, and an abundance of applications have been implemented in a range of industries, with different emphasis in each one. In many sectors, the approach to specifying an industry wide DLT standard protocol and process is maturing.
To balance this likely scenario, on the technical side, progress will take time to materialize. However, we cannot say there is total inertia. Of course, the Lightning Network is gaining momentum, but Ethereum, Cardano, and others still must deliver on the expectations, especially in terms of scalability and confirmation time. The devil lies in the implementation of the good ideas that were formulated a few years ago.
As bottom line, we now are in a phase that will see incremental progress, rather than new, bright ideas emerging every week, but lacking substance.