The cryptocurrency market faces challenging times, caught in stagnation and uncertainty. Analysts and experts discuss what might lead to a change in the current situation.
Stagnation and Weak Demand in Crypto
Analyst Aylo believes that the cryptocurrency sector is struggling to find direction. In his post on X, he noted that outside of Bitcoin and Ethereum, the market has barely seen any growth in recent years. Trading volumes have stalled, and the overall market cap has failed to register significant growth. The lack of strong narratives and projects with real utility has hindered momentum, raising concerns over long-term investor confidence.
> “We are lacking narratives and projects that people actually believe in (tokens that people actually want to buy and hold),” the expert wrote.
Institutional Adoption and Regulation
Despite the ongoing stagnation, some experts believe that upcoming regulatory changes could provide the market with a much-needed boost. DeFi expert Ignas pointed out that institutional players are revising their strategies. New KYC pools for tokenized assets by Coinbase and increased involvement of major firms like Revolut and PayPal in stablecoins indicate a shifting crypto landscape.
Future of Cryptocurrencies: Analysts' Insight
CryptoQuant CEO Ki Young Ju warns that Bitcoin’s bull cycle may have already ended. Meanwhile, data from CryptoQuant indicate resilience is building among Bitcoin owners as the number of those holding the asset for 3 to 6 months has increased. This suggests that long-term investors remain confident even with price fluctuations.
The cryptocurrency market remains uncertain, but experts see potential for its emergence from stagnation through regulatory changes and institutional initiatives.
