© Unsplash/Jonathan Borba
Once promising, the cryptocurrency and NFT markets are struggling to recover from the fall of the FTX exchange a year ago. It must be said that this major fall brought with it investor confidence. With the added bonus of the outbreak of war in Ukraine and its systemic consequences, investors moved away from their riskiest assets.
Enough to get rid of questionable crypto en masse, initially, but also their NFTs. To the point that this second market is, at the time of writing these lines, no longer worth much. One of the most popular NFT series, Bored Ape Yacht Club, which sometimes represented the equivalent of several million euros per unit, before seeing their value melting like snow in the sun – at the time of writing, these assets are trading on average for the equivalent of around fifty thousand dollars.
We must also not forget the doubts surrounding stablecoins – with the also systemic bankruptcy of the Silicon Valley Bank, which allowed rapid exchanges between certain values and real dollars. Enough to call into question the very interest of this type of asset. However, since then, the situation in these markets seems to be slipping, against a backdrop of threats from the American regulator, and the authorities of several major European countries, notably the United Kingdom, the Netherlands and Germany.
Challenges that even pushed the Binance platform towards exit in these markets. Institutional investors are still hesitant to return – even if it is necessary to note a glimmer of hope: Bitcoin. The value of the latter, described by several leading players, such as Larry Fink, founder of BlackRock, as a “kind of digital gold” has more than doubled since the fall of FTX which caused it to “hit the bottom of the pool”.
It could also be, according to our colleagues at Le Figaro, that this stock will be part of one of the first ETFs officially approved by the American Securities and Exchange Commission. Enough to allow investors to bet on Bitcoin, without necessarily opening a wallet and holding assets. BlackRock, the largest investment bank in the world, is of course on board.
Another ray of hope, Ethereum, which exceeds $200 billion in capitalization or even Tether which is pegged to the dollar. The advantage of Ethereum over Bitcoin is that the blockchain allows the formation of “smart contracts”; programmatic. A very useful aspect which is already used by certain insurance companies to settle certain operations, and can still give rise to a large number of innovations. It remains to be seen what 2024 has in store for these markets. To be continued.