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The year 2021 was the year of institutional investors that fueled Bitcoin's run to almost $70,000. The bullrun would not be possible without enormous inflows from institutional investors like Paradigm, a16z and even 3AC, according to the Messari report. But in 2022, the situation changed drastically.
If during the last bullrun investors were aiming at the right exit from the market, today we see the opposite situation: institutions are looking for potential entries that will maximize their profits on the market.
Alex DovbnyaIn their report, Messari analysts and experts believe that institutions are coming back into the cryptocurrency industry, despite the low or nonexistent profitability of some funds. The same scenario was observed back in 2018, when institutions made their first purchases, when Bitcoin was trading at or below $10,000.
Considering that BTC lost over 70% of its value, purchasing the digital gold now is similar to buying the asset back in 2018.
Other topics covered by Messari
In addition to the potential behavior of institutional investors, Messari covered other topics like the decoupling of the cryptocurrency industry, the market's growth potential and faith in alternative L1s.
In terms of different segments of the industry, Messari experts believe we are seeing the separation of DeFi, NFT and other sub-segments of the digital assets industry considering their massive growth and independence.
Arman ShirinyanAnalysts also believe that NFT will be able to fuel the adoption of the cryptocurrencies in the future once the industry's infrastructure steps up and brings more tools for creators and reputation management, considering its state today.
Decentralized finance, on the other hand, is yet to solve technical and security issues to become more usable in the future.
Alex Dovbnya
Vladislav Sopov
Dan Burgin