Crypto Executives Expect a Slow Year in 2019 and This May Be Bad News For Price


In the last three months, the valuation of the crypto market has declined from over $219 billion to $113 billion as the Bitcoin price nearly halved.

Following an intense sell-off in November 2018, executives at major crypto businesses and blockchain projects expected the bear market to extend across 2019.

While many believe that a proper bottom will be established in the crypto market in the short-term, analysts expect a several-month-long consolidation period to follow, leading 2019 to be a boring year in terms of volatility.

Source: CoinMarketCap.com

Why a Slow Year is Expected

Speaking to Yahoo, Andy Bromberg, the CEO at CoinList, a platform on which crypto projects can raise capital, said that the market will become quiet for a while as the sector focuses on building the infrastructure for the next wave of investors and users.

Subsequent to a peak in interest and demand for crypto projects in late 2017, the majority of projects in the blockchain market were not able to deliver and satisfy investors.

Currently, Bromberg said that development teams are focused on building products and to acquire active users to create a sustainable environment.

Bromberg stated:

“We had this first wave of massive hype around ICOs in 2017, early 2018, and then a little bit of a pullback. And now in 2019, it feels like people are focused on building… I think the market is going to be quiet for a little bit, while people focus on actually creating things. It feels like a little bit of a Mesopotamia, ‘cradle of civilization’ moment, where everyone has the ingredients they need, needs to focus in and start to build out those empires, and create what the future is going to look like, and that’s what this year is going to be about.”

The most common criticism against initial coin offering (ICO) projects has been their struggle to showcase active user bases, widely used products, and potential.

Many ICOs that were valued at hundreds of millions of dollars less than 10 months ago are yet to demonstrate blockchain-based products that are widely utilized by users globally.

Yet, as venture capital investors including Arianna Simpson said, one positive indicator for the long-term growth of the cryptocurrency sector is the high developer activity in the space despite an 85 percent decline in the valuation of cryptocurrencies.

While a slow year in 2019 is expected and major crypto assets such as Bitcoin and Ethereum will likely take a long time to recover, both investors and executives in the space see the industry rebounding in the long run.

How Long Will it Take to Recover?

Earlier this month, at the Crypto Finance Conference, Ethereum co-creator and Cardano founder Charles Hoskinson said that it could easily take 11 years for cryptocurrencies to recover to where it was in 2017.

“It might take 11 years for us [the crypto industry] to recover back to where we were in 2017, but we will be a dramatically different ecosystem at that point. We’ll have millions, perhaps even billions of users. We will be in many consumer products, be easy to use, [even] grandma can use it. A lot of the hard stuff will have been figured out.”

Hoskinson emphasized that to fuel a strong recovery, it is of the utmost importance to ease the accessibility of cryptocurrencies and improve the mainstream adoption of crypto assets.

Every major crypto company has a different stance on ways to kindle the adoption of consensus currencies. Binance, the world’s largest crypto exchange, for instance, is focused on introducing more fiat on-ramps to increase the inflow of capital from traditional markets to the crypto sector.

As companies move toward improving various areas within crypto including fiat on-ramps, accessibility to decentralized systems, and decentralized applications (DApps), in the long-term, the crypto market could gradually recover back to its previous levels.

Featured Photo by Luca Ambrosi on Unsplash


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Joseph Y

Joseph Yung is a financial analyst and investor who has worked in the cryptocurrency and technology sector since 2013. He's worked with leading publications within the cryptocurrency space, providing unique insights, interviews, market analysis, and technology coverage. You can contact Joseph at j@cryptomenow.com

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