Recent data reveal that cryptocurrencies are starting to become an integral part of institutional portfolios. According to experts, this situation could have several effects on the future of the crypto industry.
An integration that will stimulate the growth of the crypto market
On July 26, the Messari account published on Twitter a graph showing “ the full impact of institutional entry into crypto ». It appears that many institutional investors have entered the cryptocurrency sector since 2021, with more and more venture capital investments and hedge funds registered. And their investments strongly stimulate the growth of this industry.
According to experts, institutions bring more liquidity cryptocurrency, which will increasingly increase the scale of this sector. Indeed, 5 years ago, only a handful of cryptocurrency exchanges had access to crypto liquidity. Today, the situation has changed a lot: exchanges have gone from a few million dollars registered in their accounts to several billion dollars!
In addition, cryptocurrency volatility could ease as the number of institutions present in the sector increases. With the institutional entry into crypto, blockchain and digital assets will be able to be more easily applied to real and non-speculative use cases. Among the latter, there are games, real estate, stocks, etc.
Moreover, experts believe that the institutional use of cryptocurrencies will promote wider adoption of this asset class. This will therefore significantly increase the number of investors in the cryptocurrency market.
Cryptocurrencies are increasingly becoming part of institutional portfolios. This situation could have a very positive impact on the digital asset market. The entry of institutional investors into the crypto market could, among other things, allow cryptocurrencies to become a common asset class faster.
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Behind the generic signature “Editorial CT” are young journalists and authors with special profiles who wish to remain anonymous because they are involved in the ecosystem with certain obligations.