The crypto market has had a great year so far, thanks to the impressive record of the DeFi sector and the positive run of Bitcoin. In the last 10 months, the crypto market has flourished despite the prevalence of a health crisis and an economic recession. Since the year began, the price of Bitcoin has gained 300% compared to the meager 23% recorded by Gold. More impressive is the fact Bitcoin is up 300% since the global financial crash in March that left investors in a state of frenzy regardless of the market they were invested in.
Another statistic that shows the impressive potential of Bitcoin is that the asset’s market cap is just 2.36% of Gold’s market size. This figure is indicative of the investment opportunity embedded in the emerging Bitcoin market, particularly in light of the asset’s growing “digital gold” status. Accompanying Bitcoin’s stellar performance is the growing interest in Altcoins including Ethereum and Cardano. For what is worth, the crypto market is poised for a bull run. And this time around, it is not due to an unsustainable market trend. Instead, this growth hinges on significant developments as well as undeniable and organic interest from investors.
However, as usual, no one can say for sure what to expect in the long-term. Will Bitcoin retain its dominance in the crypto market? Or will the ongoing upgrades slated for Ethereum have the sort of impact potent enough to push the price of ETH to the historical $1,400 price mark? Irrespective of where this current momentum positions its constituent assets in the long-term and short-term, one thing is certain: The crypto market has come a long way, and it is slowly taking its place as a viable investment landscape.
In light of this massive growth potential, I decided to reach out to Alex Richter, CEO of Antares, for an interview session where we discussed some of the unraveling details about the current scope of cryptocurrencies. Antares is a unique MLM distribution platform that has introduced new investment, marketing, and funding opportunities for partner companies and network participants. Below are some of the excerpt from the interview:
Andrey Sergeenkov: What do you think of market trends and how they are propelling the price performances of digital assets?
Alex Richter: Over the last three bearish years, the crypto market has rediscovered its mojo by focusing on creating effective infrastructures as against relying on fickle market trends and speculations. Now, we are beginning to see the result of the decision to switch to a systemic approach to development. I was quite sure that this will drive the demand for cryptocurrency and subsequently push the prices of digital assets. As expected, the momentum gained as a result of core implementations and innovative products has begun to manifest through the uptick in prices of cryptocurrencies. Unlike the previous bull run, I believe that this price performance is sustainable.
Andrey Sergeenkov: What are the digital assets you are most excited about?
Alex Richter: Like every true proponent, Bitcoin remains one of my most revered crypto projects. The dynamic model of this network is unrivaled and still has a significant influence on the value of the crypto market as a whole. Another crypto network that I have always paid attention to is Ethereum. There are a lot of narratives emerging within this ecosystem, and it will be interesting to see how they unravel. Lastly, Cardano promises a horde of technical advancements that are compelling enough to induce unprecedented crypto growth. These are just some of the cryptocurrencies that have the infrastructural capacity to propel the crypto industry.
Andrey Sergeenkov: Let us zero in on Bitcoin. What are the contributing factors to its current price performance
Alex Richter: The unique narrative that has helped Bitcoin to maintain its status as the “King of Crypto” is its safe haven status not just in the crypto scene but also in the global financial market. Investors are coming to terms with the modalities of Bitcoin and its viability as leverage against inflation. This is why a growing number of traditional companies have begun to adopt it as a reverse asset. If this trend continues, expect the price of Bitcoin to surpass its current all-time high. Apart from institutional adoption, retail investors are showing renewed interest in the digital asset amid the raging effects of an unrelenting health pandemic. Truth be told, there are lots of factors favoring the positive price swings of Bitcoin.
Andrey Sergeenkov: Are you saying that we are on the verge of a Bitcoin bull market?
Alex Richter: Of course, there is a possibility that the Bitcoin market will embark on a bull run sooner rather than later. All market indicators point to this fact. It is safe to say that since 2017, this is the first time that FOMO is extensively being regarded as a price propellant. However, in this case, the market is not dependent on unregulated industry practices like ICO but painfully established market fundamentals.
Andrey Sergeenkov: What about Ethereum? Does the price disparity between 2017’s performance and present movement count for anything?
Alex Richter: Ethereum is presently selling within the $400-$460 range. When you compare that to its peak price of $1,400 in the last bull run and carry out a similar analysis on the price trend of Bitcoin, you will surely discover an anomaly that is surprisingly prevalent across the entire crypto market. My conclusion is that we are still awaiting an Alt season potent enough to drive the value of non-DeFi assets to monumental ranges.
Andrey Sergeenkov: Do you think that the successful launch of Eth2 is critical to ETH’s price resurgence?
Alex Richter: Without any doubt, Ethereum 2.0 is a significant factor to consider when projecting ETH’s future price performance. If we are going to see ETH sell for $1,400 and above, it is a must for Ethereum 2.0 to launch as planned. There is a certain dynamism that comes with ETH2 implementations that will make the ecosystem robust to cater to consumers’ demand. The more users interact with Ethereum, the higher the chances of a bull run. Hence, the Ethereum network is a critical junction, and whatever happens next will have a major impact on ETH’s price.
Andrey Sergeenkov: You also mentioned Cardano as an exciting project to look out for. Why is this so?
Alex Richter: Apart from the fact that it is number 10 on the crypto market rankings with ADA boasting over $3 billion market cap and a 24-hour trading volume of around $300 million, Cardano represents an innovative-driven offering with the potential of improving on prominent crypto methodologies. In the last couple of years, the teams responsible for developing and maintaining Cardano have set out to implement well-defined infrastructural advancements that may put the network ahead of the well-established Ethereum. I identified Cardano as a viable project because of the technical modalities of the blockchain product and the possibilities it promises.
Andrey Sergeenkov: I am surprised that you have not mentioned DeFi so far. I will love for you to share more insight into this fast-growing sector.
Alex Richter: The DeFi narrative is peculiar because over 90% of the assets locked in the sector is ETH. Hence, despite the high-flying nature of the landscape, its future relies on the success of Ethereum. The only way that this fact will become redundant is that if developers begin to adopt alternative blockchain systems to house their applications. However, this does not diminish DeFi’s propensity for mainstream success. As seen for the better part of 2020, the sector has a pivotal role to play in the unfolding crypto adoption saga.
Andrey Sergeenkov: I noticed from your analysis that you are passionate about the technological aspect of cryptocurrency. Is this why you and your team have introduced it as one of Antares’ core features?
Alex Richter: That is a correct observation. I understand that crypto is ideal for projects looking to establish secure global networks and enable a free and fair economy. This is why we have integrated this technology into our investment and referral systems. Crypto technology gives us a lot of options to explore, and with that, we have successfully built the world's first MLM distribution platform.
Andrey Sergeenkov: What is your long-term assessment of the crypto market as a whole?
Alex Richter: There are a few growth barriers. Hence, my verdict is that present achievements pale in contrast to future successes. Bearing in mind the number of ingenious individuals committed to the growth of this market, the industry has all it needs to dominate globally. Neither regulators nor the more established traditional alternatives can stifle the growth potential. It is either they align with the crypto and blockchain narrative or get left behind.