The globally preeminent crypto exchange, Binance, has recently expressed that its institutional clientele holds a largely sanguine outlook on the future of cryptocurrencies. This conclusion comes in light of a survey the exchange held over a two-month period earlier in the year. Of the survey subjects consisting of funds with under $25 million to over $100 million in crypto assets under management (AUM), the majority expressed long-term optimism towards crypto.
The balance of expectations in the cryptocurrency panorama appears to lean towards positivity, with 63.5% of clients indicating a favourable forecast for the next year and an overwhelming 88% harbouring optimism for the next decade. This indicates a trend for persistence of the growing interest and trust in blockchain technology, despite recent adverse market events.
Moreover, the survey observed that a significant proportion of investors steadfastly maintained their crypto allocations. Almost half of them held fast even in the face of market fluctuation, while more than a third even increased their allocations—a clear showing of conviction amid uncertainty. A minuscule 4.3% expressed an intention to decrease their crypto allocations in the coming year.
However, the landscape of optimism is not without clouds. Investors are now sceptical about the once-high-flying sectors of NFTs, metaverse, and gaming. These areas had their golden period in 2021, with astronomical NFT sales and Facebook’s significant rebranding to Meta, giving it primary focus on the metaverse. Now, the bullish sentiment seems to have faded as NFT trading volume dropped, and the growth of the metaverse remained stagnant.
On the contrary, an increased interest was noted on infrastructural investments in the crypto space. With 54% of them leaning towards infrastructure, another significant proportion showed keen interest in layer 1 and layer 2 projects. This proclivity was likely bolstered when LayerZero Labs, a blockchain infrastructure provider, elicited a tripling of its valuation in a recent funding round.
Therefore, whilst the survey predominantly demonstrated bullish trends, the shift of interest from NFTs and metaverse to infrastructural investments highlights the growing maturity of the market. As the crypto world remains entwined with global finance, speculation gives way to prudence and renewed strategy. Regardless of recent challenges, the crypto market continues to hold sway with its resilience and evolving appeal.
Source: Coindesk
