A senior executive at the technology company building smart contract platform Avalanche (AVAX) believes that many crypto investors who currently hold stablecoins are gearing up to buy into the market. increase.
In a new interview with Bloomberg, Ava Labs President John Wu said: To tell Despite last year’s plunge in market capitalization, the underlying fundamentals of the cryptocurrency industry are strengthening.
He hopes that stablecoin holders will reinvest and reap big returns in the future.
What the market needs to understand is that there is alpha in the crypto space, and for good reason.
Fundamentals are definitely increasing and improving. [As for] Cryptocurrencies are declining in market capitalization, but stablecoins are not.
This shows that many are hiding there ready for deployment. “
Alpha is the time at which an investor earns more than the average return of an asset.
Regarding the upcoming move to Ethereum and Proof of Stake (PoS) consensus mechanisms, Wu said whether the risk correlation between Ethereum and Bitcoin (BTC) to the Nasdaq would decline from its current 0.75 level. The Merge says it will generate alpha profits. .
It’s a big catalyst.
There will be some alpha in that space. “
In statistics, a correlation coefficient of 1 indicates a perfect linear relationship.
The tech executives conclude by discussing the end of the bear market and what’s next for the crypto space.
“Personally, I think winter will last a little longer, but what I’m really looking forward to is these new applications, new protocols that will literally redefine how we operate and build businesses.
When tokenization is in full swing, what you can do is encode your business logic into smart contracts and your platform becomes your business. “
Wu then gave an example of how the employees of the decentralized exchange Uniswap (UNI) could significantly increase the daily trading volume per capita than the large centralized exchange Coinbase. I am listing.
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