Here are some of the biggest plays in Crypto right now, according to Pantera Capital CEO Dan Morehead
The founder of a crypto-focused hedge fund is looking ahead to see which industry niches may thrive once the current bear market cycle is over.
In an interview with RealVision, Pantera Capital CEO Dan Morehead tells host Raoul Pal that the crypto world is cyclical because when projects either complete or disappear, there are always new opportunities to seize, such as decentralized finance (DeFi) and non-fungibles. tokens (NFTs).
“Things have gone through eras. Things that were important four or five years ago are either all built out now and don’t have much potential.
I think DeFi is incredibly cheap right now, so [it] should be a large part of what someone invests in.
The next frontiers are things like games [and the] NFT rooms have just now reached a critical mass that enough people are using. Blockchain games, that it is relevant.”
The CEO says there are still opportunities to invest in more traditional aspects of crypto, such as exchanges, noting that many major countries around the world still lack a centralized marketplace to buy and sell digital assets.
“In our venture investing, we’ve invested across the whole spectrum of things. Even things like exchanges, you can say, ‘Hey, they’ve got to be fully built out.’ They’re not!
There are many countries that are massive, like Indonesia – we invested in Pintu recently. 120 million people, and they’re all going to use blockchain, and it wasn’t really a big exchange a year ago.
There are still countries like this that need exchanges.”
Morehead goes on to emphasize the importance of layer-2 scaling solutions because both Bitcoin (BTC) and Ethereum (ETH) have capacity constraints that need to be addressed to accommodate increased blockchain usage.
“We have been major investors in layer 2 scaling solutions. Bitcoin and Ethereum are great, but they only do a very limited number of transactions, so we need it.
There are borrowing and lending protocols, very important. So you’re going to have both consumer and infrastructure plays that are very important in this next cycle.”
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