Ava Labs president John Wu is saying that there’s renewed optimism and energy in the crypto ecosystem as the markets witness rising prices.
The president of the Avalanche (AVAX) development firm says in a new Bloomberg interview that the banking crisis, which saw the likes of Silicon Valley Bank (SVB) collapse, reinvigorated market participants in the crypto space.
“The excitement inside the ecosystem of crypto has been reinvigorated. Most of this price rally, people don’t realize, happened right after SVB.
It was a reminder to the crypto-native people as to why they got into this space originally – the mistrust they have for large institutions.
That’s why Bitcoin became very popular after 2008. And because of that reminder, I think it reinvigorated the crypto-native community.”
On whether there are new participants entering the ecosystem, Wu says that the uptick in crypto prices is largely driven by the crypto community. According to the Ava Labs president, new entrants have yet to dip their toes into the crypto markets.
“You’re not seeing the OTC (over-the-counter) markets or the on-ramps like fiat like through Coinbase into the crypto ecosystem really picking up yet. They are still hesitant.”
According to the Ava Labs president, the crypto industry needs institutional buyers to sustain the ascent in prices.
“Earlier I just said that that rally has been driven by native crypto people.
And, in my opinion, for this asset class to continue to grow in price at least, you really need institutional buyers to come into this space.
And for real institutional buyers to come into the space, you need real utility, real-world use cases.”
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