Tezos’s co-founder, Kathleen Breitman, believes that the crypto winter will only worsen over the next 12 months.
The cryptocurrency market has been going through a declining period for the past year. The market has seen more than $2 trillion disappear over the past year, with Bitcoin and other major cryptocurrencies falling by more than 70% from their highs.
Breitman spoke out about the fall in crypto prices:
“A lot was inflated on cheap money, and a lot was backed by VCs trying to pump. So it was easy for cash to flow into the system, and it was artificially stimulating various things, including the valuations of these companies.
She mentioned this during her speech at the Web Summit conference in Lisbon (Portugal). She said OpenSea NFT marketplace, whose trading volume dropped from $2.9 billion in September 2021 to $349m in September 2022.
There is a phenomenon in these markets that have risen and disappeared, but they still have a $13 trillion valuation. So, there was a lot of cheap capital that went in. Valuations went sky-high, so people had to scramble to justify those valuations in some way. Now that the easy money’s gone, we’re seeing communities, I hope.”
Analysts believe a pause next year in Federal Reserve rate increases could lead to cryptocurrencies rallying again. Breitman believes there will be a shift in how crypto and tech companies will be valued. It would be based on anticipatory benefits and actual user growth.
Tezos has been growing its presence in the web3 ecosystem. For example, tezos-based, nonfungible tokens (NFTs) were made available last month on Shopify, a popular e-commerce platform.
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