Can institutional investors expand into altcoin purchases? Blockfi’s vice president for Europe and Asia, David Olsson, mentioned liquidity as part of the consideration.
Some digital assets in the market, including newer ones, can sometimes generate high volumes. “The question is, how long can that last,” explained Olsson at a CfC Moritz conference segment on Wednesday, adding:
Chainlink (LINK) is one that has maintained quite a bit of volume over time, but a lot of them tend to be, you know, sort of the next best thing, and then hiss and it volume disappears, “
Ethereum (ETH) sits right below Bitcoin with a market cap of about $ 152 billion. Chain (USDT) is in third place with about $ 24 billion and Polkadot (DOT) in fourth place with about $ 15 billion. Lisk (LSK) is ranked 100th and has a market capitalization of approximately $ 186 million. Thousands of other crypto assets have market caps that descend from there.
Olsson said of potential altcoins:
“So I think, from the perspective of our trading desk, we really want to see a year’s trading history where the market cap is kind of close to $ 1 billion and it’s at least kind of $ 100 million a day in volume. trades and that the sources of liquidity are reliable in terms of the exchanges where they are traded. ”
However, the crypto industry still has its skeptics, including billionaire Mark Cuban, recently compared crypto assets to the dot-com bubble of the late 90s and early 00s.