The crypto-focused hedge fund founder is excited to see which industry niches will thrive once the current bear market cycle is over.
In an interview with RealVision, Pantera Capital CEO Dan Morehead said: To tell Host Raoul Pal says the crypto world is cyclical because as projects complete or die, there are always new opportunities to grab, such as decentralized finance (DeFi) and non-fungible tokens (NFTs). increase.
“Things have gone with the times. What was important four or five years ago is now all built up and there aren’t many opportunities.
I think DeFi is incredibly cheap right now, so [it] It should be a big part of what someone invests in.
The next frontier is like a game [and the] The NFT space has just now reached critical mass with enough people using it. Blockchain games, what it is related to. ”
The CEO said there are still opportunities to invest in more traditional aspects of crypto such as exchanges, pointing out that many of the world’s largest powers still lack a centralized marketplace for buying and selling digital assets. doing.
“At our venture investments, we’ve invested in everything. Even things like exchanges where we could say, ‘Hey, they all have to be built perfectly.’ Not!
There are many large countries like Indonesia. I recently invested in Pintu. 120 million people will use blockchain, but a year ago there were no big deals.
There are still countries that need such exchanges. ”
Morehead continues to emphasize the importance of layer 2 scaling solutions.Bitcoin) and Ethereum (ethereum) There are capacity limitations that need to be addressed to accommodate the increasing use of blockchain.
“We have invested heavily in Layer 2 scaling solutions. Bitcoin and Ethereum are great, but we need them because we can only do a very limited number of transactions.
There are borrowing and lending protocols, which are very important. So in this next cycle, both consumer and infrastructure play will be very important. ”
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