• ‘Investable universe’ of crypto is narrowing: NYDIG NYDIG’s Greg Cipolaro says only a handful of crypto applications are attractive to investors and that the sector needs to reevaluate its “broad ‘web3’ ambition.” Cointelegraph in your social feed The number of crypto applications that can attract investors is starting to shrink as the industry matures, but that could be a positive to show the sector’s long-term winners, says the crypto services company NYDIG. • NYDIG research lead Greg Cipolarosaidin a note on Friday that the “investable universe” of crypto is narrowing to applications or services that “extend traditional finance products onto blockchain infrastructure.” He specifically named Bitcoin (BTC),tokenized assets, stablecoins, some decentralized finance infrastructure, and a limited number of “general-purpose” blockchains like Ethereum, adding that beyond such use cases, “the probability of large-scale blockchain applications appears lower than previously assumed.” Some crypto executives had backed blockchain to serve up an alternative to nearly any offering, but many once-hyped crypto use cases, such as gaming, social networking, and the metaverse,have fizzled outcompared with their centralized competition. • Cipolaro argued that’s because centralized systems “will always be faster, cheaper, and operationally more efficient for the vast majority of enterprise and consumer applications.” Economically viable apps will be slimmer than expected Cipolaro said that the “space for economically viable blockchain applications is narrower than early narratives hoped,” as he argued only the use cases where the benefit of blockchains outweigh its costs will survive. • “The core attributes of open blockchains, trustlessness, permissionlessness, and censorship resistance, are uniquely suited to money and money-like (financial) applications,” he added. • “Most real-world applications do not require global, permissionless state machines with immutable ledgers.” Cipolaro said th
Article Summaries:
- NYDIG’s research notes that the range of crypto projects likely to attract investors is shrinking as the industry matures. According to Greg Cipolaro, the “investable universe” is narrowing to applications that extend traditional finance onto blockchain, such as Bitcoin, tokenized assets, stablecoins, limited DeFi infrastructure, and a few general‑purpose chains like Ethereum. Non‑financial use cases-gaming, social networking, the metaverse-have largely failed to compete with centralized alternatives, leading to a consolidation of capital into a smaller set of financially focused projects. While this may clarify long‑term winners, it could also reduce the speculative breadth and overall addressable market of crypto.
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