Blast founder Tieshun Roquerre, also known as Pacman, discusses why the current crypto cycle lacks the fundamental innovations that characterized previous cycles and what it means for the market.
Points
- The current crypto cycle is driven more by ETFs and market pressure rather than groundbreaking technological innovations.
- Past cycles were marked by significant advancements, such as the creation of NFTs and decentralized exchanges, which spurred new adoption waves.
- The struggling NFT market and the lack of fresh innovation are contributing to the cycle’s sluggishness.
Tieshun Roquerre, better known as Pacman, the founder of Blast, has pointed out that the current cryptocurrency cycle is fundamentally different from those that came before it. In a virtual Q&A session during the Foresight 2024 event in Hong Kong, Pacman explained that this cycle hasn’t been fueled by groundbreaking technological innovations like its predecessors. Instead, the market is being driven by factors such as the launch of exchange-traded funds （ETFs） and external pressures, which are not as potent in catalyzing widespread adoption.
In previous cycles, significant technological innovations played a crucial role in driving the market forward. For example, the initial coin offerings （ICOs） boom, the rise of decentralized finance （DeFi） platforms like Uniswap, and the explosion of non-fungible tokens （NFTs） all spearheaded new waves of adoption and capital influx. These innovations introduced novel concepts that captured the imagination of both investors and users, leading to rapid market expansion.
However, the current cycle appears to lack such innovation. The NFT market, which once symbolized the potential for digital ownership and new forms of value creation, has struggled to maintain momentum. Pacman suggests that for the NFT market to regain its footing, it will require a new twist or significant evolution that can reignite interest. Without such a development, the market may continue to stagnate, lacking the dynamism that characterized previous cycles.
Despite the sluggishness of the current cycle, Pacman hinted at big plans for Blur, the NFT marketplace he launched in 2022. He mentioned that Blur is preparing for its “biggest project” to date, although details remain under wraps. This project could potentially be the kind of innovation that the market needs to spark new interest and adoption.
Pacman’s insights highlight a broader issue within the crypto industry: the need for continuous innovation to drive growth. While ETFs and market pressure can sustain interest, they do not have the same transformative impact as fundamental technological advancements. As the industry matures, the challenge will be to identify and develop the next big innovation that can propel the market forward.
解説
- The current crypto cycle’s reliance on ETFs and market dynamics rather than technological innovation suggests that the market may be maturing but at the cost of the explosive growth seen in earlier cycles. ETFs, while important for institutional adoption, do not introduce new technology or use cases that can drive mass adoption. They are more about providing a new avenue for investment rather than expanding the utility or application of blockchain technology.
- Pacman’s comments about the need for a “twist” in the NFT space are particularly telling. The NFT market has struggled to maintain its initial momentum, and without new innovations or applications, it risks being relegated to a niche segment of the broader crypto market. This underscores the importance of ongoing innovation in maintaining the vibrancy and growth of the crypto industry.
- For the crypto market to avoid stagnation, it will need to look beyond financial products like ETFs and focus on developing new technologies and applications that can drive real-world adoption. This could involve advancements in areas like scalability, interoperability, or new use cases for blockchain technology that have yet to be fully explored. As the market looks toward the future, the key to sustained growth will likely be the ability to innovate and adapt to changing conditions.