According to John Wu, president of Ava Labs, the cryptocurrency ecosystem is now more optimistic and energetic as a result of its higher value on exchanges. In a recent interview with Bloomberg, the head of development company Avalanche (AVAX) claimed that the financial crisis, which resulted in the failure of institutions such as Silicon Valley Bank (SVB), revived market players in the cryptocurrency area.
“The cryptocurrency ecosystem now has a new energy. People don’t realize that most of these price spikes happen immediately after SVB. It serves as a reminder to crypto natives of their original motivation for entering the field: their distrust of powerful institutions.
Because of this, Bitcoin’s popularity exploded after 2008. And I believe the crypto-native community was revived as a result of that reminder. Wu claims that the increase in the value of crypto is largely driven by the crypto community and not by new players entering the ecosystem. The head of Ava Labs claims that new competitors have not yet entered the cryptocurrency market.
“Over-the-counter (OTC) and on-ramp markets like fiat through Coinbase into the cryptocurrency ecosystem haven’t really picked up. They kept their guard up. The CEO of Ava Labs claims that institutional investors are needed for the cryptocurrency market to continue to see prices rise.
“Previously, I argued that the local crypto community had supported the rally. And from my perspective, institutional buyers are absolutely necessary for this asset class to continue to grow in value, if not the other way around. You need actual uses and real-world use cases for real institutional buyers to enter the market.