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Recently, Trump's victory has sparked a surge in the cryptocurrency market, with Bitcoin prices once breaking the $93K mark. Looking back to 2018, Bitcoin was valued at $3,000; the market has undergone significant changes since then. In the face of such drastic changes, crypto venture capitalists shared their views on the market's future.
Trump's policies clarify and help Web3 businesses usher in a super cycle
Many crypto operators state that a series of policies promoted by Trump in the future, along with regulatory relaxations, will greatly unleash the potential for innovation in the crypto industry. Although the Biden administration previously conducted a series of 'destructive' enforcement actions against the crypto industry, a16z crypto partner Arianna Simpson stated that with the new government in power, crypto operators and related entrepreneurs will have greater freedom, and a large number of new products will emerge like mushrooms after rain.
Some operators also indicate that once regulations are relaxed in the future, entrepreneurs emerging from traditional industries will be more willing to enter the cryptocurrency market, thus driving market development. Currently, some companies are actively expanding their investment teams and concentrating resources to prepare for this wave of the cryptocurrency market's 'super cycle.'
Cryptocurrency AI, DeFi, and RWA become the focus of explosive growth
The combination of cryptocurrency with AI and decentralized finance (DeFi) has also been favored by many venture capital firms, which believe these technologies will experience explosive growth in the coming years. Ed Roman, co-founder of the crypto venture capital firm Hack VC, stated that the current market focus is on Crypto-AI.
Roman believes that the development of the Crypto-AI field largely depends on the health status of the traditional Web2 AI field (OpenAI, Google), and considers NVIDIA's performance and market behavior as important indicators to assess the health of Web2 AI, thereby gauging the future development of Crypto-AI.
In addition, DeFi is also considered the next explosive field. Some operators believe that DeFi is expected to surpass traditional financial tools in terms of yield and efficiency, and it aims to solve the pain points of traditional finance (TradFi) through efficiency, transparency, and decentralization.
It was further pointed out that some TradFi institutions are beginning to use decentralized exchanges (DEX) as a medium to put real-world assets (RWA) on-chain. Regarding stablecoins and payments, some operators believe that after Trump takes office, barriers between banking and crypto payments will be reduced, accelerating the adoption of stablecoins.
Consumer applications and infrastructure have great potential, and the debate continues over whether technology or narrative will lead the way.
In the cryptocurrency market, the development of 'consumer applications and infrastructure' has become the core focus of investors. In the past, regulatory pressure from the Biden administration compressed growth space, but with policies gradually relaxing, explosive growth is expected in the future.
At the same time, differing views on infrastructure investment have also emerged. Some crypto operators are optimistic about the potential of Restaking and Zero Knowledge (ZK), believing these technologies are key elements for future infrastructure upgrades. However, others believe that as technological bottlenecks continue to be broken, investment opportunities in this field may gradually decrease, leading to market saturation. Additionally, some operators argue that 'brand' and 'narrative' capabilities are the keys to success, rather than technical strength.
[Disclaimer] The market has risks; investment should be cautious. This article does not constitute investment advice, and users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their specific situation. Invest accordingly at your own risk.
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'Trump's election drives the crypto wave! 3 major tracks become the focus of explosive growth; will the industry welcome a super cycle?' This article was originally published in 'Crypto City'
