Mark Cuban, a billionaire investor and the owner of Dallas Mavericks, has said the next trigger for overwhelming crypto and blockchain adoption. Cuban likened the adoption journey of cryptocurrencies to that of the internet.
Mark Cuban compares crypto adoption to internet adoption
Cuban was talking about the current state of the cryptocurrency market, where the prices have failed to register any significant gains. He compared the journey of the cryptocurrency space to the internet and dot.com bubble that happened in the early 2000s.
The cryptocurrency market has recorded massive liquidations within the past few days. Several factors are causing the market’s bearish sentiment, including the recent policy changes by the Federal Reserve. However, according to Cuban, the market was cooling off as part of its journey towards mainstream adoption.
He noted that the crypto space was currently undergoing a similar “lull” to the one experienced by the internet. According to Cuban, the rise of decentralized applications, non-fungible tokens and play-to-earn platforms had created a surge in demand, but the imitation phase followed when chains subsidized the movement of their applications to their different chains.
“What we have not seen is the use of Smart Contracts to improve business productivity and profitability. That will have to be the next driver. When business can use Smart Contracts to gain a competitive advantage, they will. The chains that realize this will survive, Cuban added.
Cuban also predicted that the chains that were mimicking what had already been done would fail. He added that DeFi and NFTs were not needed on every chain. He opined that the market did not need bridges to shift NFTs from one chain to the next. “We need Smart Contract apps replacing SAAS apps,” he added.
Institution adoption for smart contracts
The institutional adoption of smart contract platforms is slowly picking up following the potential of the underlying blockchain technology. A crypto funds report by CoinShares in 2021 revealed that institutional investors preferred Ethereum, Solana, Polkadot and Cardano networks.
The report also said that funds that were giving exposure to Ethereum were becoming a favourite among large investors. These funds had generated $1.38 billion. Solana funds followed with $219 million, while Polkadot and Cardano funds generated $116 million and $115 million, respectively. The popularity of these blockchains follows their rising adoption by DApps.
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