The crypto market has not been performing well lately, and so much has been said about how it won’t survive for long. Today, there was a report indicating that crypto searches on Google have dropped by up to 75%. This might lead investors to believe that the market is doomed. However, a deeper look at the market can easily tell you that so much is going on, and that crypto is about to explode big time.
One pointer to this is the rise of sophisticated products that are bringing in much-needed liquidity to the market. Take the Huobi HB10 product for example. This crypto index is designed to track the 10 best cryptos in the market. Through this product, retail investors who don’t have the resources to invest in individual cryptocurrencies can get exposure to the very best cryptos in the market.
On top of that, the HB10 gives institutional players a chance to make a low risk entry into crypto space, through a product in which, they can easily exit the market without having to sell individual cryptos. This is a huge boost for crypto because it is the lack of institutional money in this space that has to some extent curtailed its growth. But the Huobi H10 index is not a unique product, many more are coming up. The issue of crypto ETFs has dominated the airwaves for some time now, indicating that more exchanges will be launching similar products in the near-term. Once crypto ETFs become the norm, the amount of liquidity that will flow into this market will shake it up, and push it to over $1 trillion market cap.
But it’s not just crypto ETFs that point to a simmering crypto tsunami. In the recent past, we have seen countries that were previously anti-crypto reviewing their stance. For instance, South Korea banned ICOs in January, but it seems bent on reversing this decision. It was recently announced that South Korea’s parliament was considering legalizing ICOs through legislation. China too took a tough stance on crypto a few months ago, but it’s softening up. Two days ago, China’s state television announced that blockchain could be 10 times bigger than the internet. China also recently released a list of some of the cryptos that it believes are fundamentally sound for investors. This change of tune is an indicator that governments are waking up to the reality of cryptocurrencies, and the fact that they are the future.
On top of that there is the increased adoption of certain cryptos at such a high rate that even institutions like the IMF are taking note. For instance, Ripple (XRP) has been adopted by 100s of banks all across the world, and the IMF has touched on it, as a possible solution to the inefficiencies of cross-border payments.
All these are indicators that despite the sluggish market performance, crypto is slowly taking over the world. Once it explodes, those who believe in it enough to stick around stand to reap big. A $1 trillion market cap is on the way, and it will catch many by surprise.