Crypto Investment Firm Pantera Capital Predicts Outperformance for Tokens with Strong Protocols and Product-Market Fit
Crypto investment firm Pantera Capital believes that tokens with promising underlying protocols and a demonstrated product-market fit will outperform in the upcoming cycle. The firm states that token selection will be crucial for long-term success, as outperformance will be determined on a case-by-case basis rather than within a specific sector or based on speculative narratives.
“Our thesis is that altcoins underlying protocols that have product market fit and are generating real revenues with strong unit economics will perform best in the coming cycle, just as one would expect across other asset classes like equities.” – Pantera Capital
Pantera Capital’s Predictions for 2024
Paul Veradittakit, managing partner at Pantera Capital, has made key predictions for 2024. These include Bitcoin’s renaissance driven by the fourth halving, institutional investors approving spot Bitcoin exchange-traded funds (ETFs), and advancements in programmability features. The firm also expects the growth of decentralized finance (defi) on the Bitcoin blockchain, with defi potentially accounting for 1-2% of Bitcoin’s market cap. Additionally, there may be a shift from finance to social experiences in web3, with experiments in tokenized social interactions and bridges connecting traditional finance with defi.
“In this process, many Ethereum DeFi practices are likely to be transferred and ‘naturalized’ on Bitcoin, such as the recent rise of BRC-20 inscriptions and ideas such as staking like Babylon’s L2.” – Pantera Capital
A New Chapter for Crypto Industry
Pantera Capital believes that the crypto industry has turned a page on the bankruptcies witnessed over the past eighteen months. The firm suggests that crypto is no longer solely focused on financialization but encompasses a broader idea of redefining consumer, social, and developer experiences using blockchains.
Hot Take: Pantera Capital Forecasts Promising Future for Tokens with Strong Protocols
Crypto investment firm Pantera Capital predicts that tokens with strong underlying protocols and product-market fit will outperform in the upcoming cycle. This selection of tokens will be crucial for long-term success, as performance will vary by case rather than sector. Additionally, Pantera Capital foresees Bitcoin’s renaissance driven by the fourth halving and the approval of spot Bitcoin ETFs by institutional investors. The firm also expects growth in defi on the Bitcoin blockchain and a shift from finance to social experiences in web3. Overall, Pantera Capital believes that the crypto industry is entering a new phase focused on redefining consumer, social, and developer experiences using blockchain technology.
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