According to John Wu, president of Ava Labs, the cryptocurrency ecosystem is now more upbeat and energetic as a result of higher values on the exchanges. In a recent interview with Bloomberg, the head of the Avalanche (AVAX) development company claims that the financial crisis, which resulted in the failure of institutions like Silicon Valley Bank (SVB), re-energized market players in the cryptocurrency area.
“The cryptocurrency ecosystem now has a renewed sense of energy. People are unaware that the majority of this price surge took place immediately following SVB. It served as a reminder to the crypto-natives of their original motivation for entering this field: their distrust of powerful institutions.
Because of this, Bitcoin exploded in popularity after 2008. And I believe the community of crypto-natives was reenergized as a result of that reminder. Wu claims that the rise in crypto values is mostly driven by the crypto community and not by new players entering the ecosystem. The head of Ava Labs claims that new competitors have not yet entered the cryptocurrency marketplaces.
“Over-the-counter (OTC) markets and on-ramps like fiat through Coinbase into the cryptocurrency ecosystem aren’t really gaining up yet. They continue to be wary. The CEO of Ava Labs claims that institutional investors are necessary for the cryptocurrency market to continue seeing price increases.
“Earlier, I argued that the local crypto community had powered that rally. And in my perspective, institutional purchasers are absolutely necessary for this asset class to continue growing in value, if not otherwise. You need actual usefulness and real-world use cases for real institutional purchasers to enter the market.
