At an international event, @Richard Teng stated that ‘blockchain is the future of the financial system’; how can we seek profits in this scenario?
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The year 2024 will be remembered as a milestone in the adoption of cryptocurrencies by the institutional segment. This is what Richard Teng, CEO of Binance, the largest cryptocurrency broker in the world, believes.
Participating in Token 2049, one of the biggest international crypto events that took place this week in Singapore, the CEO highlighted the importance of seeing more and more institutional investors and companies investing in the digital assets market.
“Adoption is still in its early stages, but it tends to grow,” in the opinion of the Binance leader.
Teng believes that this adoption process is mainly connected to the launch of Bitcoin and Ethereum ETFs in the US in 2024.
He also mentioned Brazil and the approval of the first investment funds in Solana here, which took place this year.
The CEO highlighted, as an example of this new reality, BlackRock’s change in positioning regarding digital assets. “When you have the largest asset manager in the world going from being skeptical about crypto to a company that has launched a cryptocurrency ETF, this symbolizes the evolution of the sector and its new moment.”
But what about from now on?
Faced with this scenario, Richard Teng demonstrated great optimism regarding the future of cryptocurrencies.
“I firmly believe that blockchain will be the future of the financial system. To achieve this, however, we need to achieve mass adoption, and this requires regulation. With regulation, we can attract institutional investors and large companies and then reach the general public.”
The leader of the world's largest exchange also said that “2025 will be a bigger year than 2024” for the crypto market, and that he projects an upward trend for assets.
The main reasons for this expectation of growth are the interest rate cut cycle in the United States, which began last Wednesday (18), and the traditional trend that Bitcoin will start to take off around six months after the halving – an event in which mining of the asset is reduced by half and which happened, for the last time, in April.
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RWAs: the ‘hot topic’ in the cryptocurrency universe
At the same time that institutional contributions to digital assets show the maturation of this market, projects that bring greater utility to cryptocurrencies in everyday life also contribute to this evolution.
An example of this are RWAs (Real World Assets).
RWAs are digital tokens that consist of the transformation of some asset, product or service that exists in the physical world into a digital version encrypted on the blockchain.
“It’s about integrating traditional finance into the blockchain infrastructure that is open, transparent and permissioned, meaning that anyone can validate or be a part of it,” explains Valter Rebelo, an economist at Insper and head of the digital assets area at Empiricus.
The best-known example of an RWA asset is stablecoins: cryptocurrencies whose value is pegged to gold or a fiat currency, such as the dollar or euro.
Therefore, RWAs represent a moment of greater maturity in the crypto asset market. These tokens no longer have their value tied solely to market speculation – they have intrinsic value and practical utility for the investor.
“You use the blockchain structure to incorporate traditional assets into this decentralized infrastructure, which can be offered to the entire world, 24 hours a day, 7 days a week, automatically and securely,” highlights Valter.
To give you an idea, the RWA sector has already accumulated US$6.45 billion in market value, according to CoinGecko, and projections from Citibank show that it could reach US$20 trillion by 2030.
For all these reasons, RWAs are the “hot topic” in the cryptocurrency universe, in Valter Rebelo’s opinion.
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This RWA cryptocurrency has already risen 832% in 18 months… but the category’s potential is much greater
An example of this important moment that RWAs are experiencing is the PENDLE asset. This crypto asset represents the protocol of the same name that allows the tokenization and trading of future returns on assets.
In other words, this project allows investment in other digital assets following a logic similar to that of fixed income, enabling predictable income linked to an interest rate.
The PENDLE token has been so successful that, in 2024, it has already appreciated by +500%. However, since it was recommended by Empiricus (in March of last year) until today, it has accumulated an even greater increase: around 832%. See:
Performance from 03/23/2023 (date of the buy recommendation, published in the report The Era of Layer 2) to 09/12/2024. Source: CoinGecko – Accessed on 09/12/2024. Past returns are not a guarantee of future profits. Investments involve risks and can cause losses to the investor.
This 832% increase would be enough to transform, for example:
R$500 up to R$4,660;
R$ 1,000 in up to R$ 9,320;
R$ 3,000 up to R$ 27,960.
All this in just 18 months. But rest assured, because although this “leg” has already happened, the potential of this group of RWA cryptocurrencies is still much greater.
