Fakoyejo OlalekanConsolidation of cryptocurrencies might be the key to halting the depreciating value of bitcoin and other digital currencies according to Bank of America analyst, Jason Kupferberg. The suggestion was made following a dip in the crypto market.
Kupferberg said the challenge obstructing the growth of the cryptoassets is that there are too many cryptocurrencies available, with the total around 19,800. He hinted that the number needs to be downsized.
According to him, what is happening in the cryptocurrency market is similar to the situation with the boom in internet-related companies in 2000. The analyst explained that few of the internet stocks became successful eventually.
Kupferberg told CNBC, “The reality is that there are too many crypto exchanges, there are too many cryptocurrencies and tokens,” stating further, “There’s going to need to be some sort of consolidation.”
There have been a meltdown in the cryptocurrency market, which has slumped below $1 trillion market capitalisation, first since January 2021. The fall is on the back of depreciation in bitcoin, ethereum and major cryptoassets.
The cryptocurrency market is currently in a crypto winter, which is a period digital currencies depreciate for a longterm, hence, the lingering dip in bitcoin, ethereum and other cryptocurrencies.
While BTC is trading below $25,000, it was projected that the most valuable cryptoasset was going to hit a peak of $100,000 before end of 2022, however, that positive outlook is blurry judging by current plunge in the market.
Although, despite the downward trend in the crypto market, a survey carried out by Bank of America shows that people are still interested in buying more cryptocurrencies in the next six months, while some individuals have disclosed their intention to still hold bitcoin and other altcoins.
Also, online shoppers are using their cryptocurrency to purchase goods digitally, while also interested in using cryptoassets as a payment option for in-person product purchase.
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