• Analyst Kaleo says that non-fungible tokens (NFTs) present the biggest opportunity for the next crypto bull cycle.
• The lack of regulatory scrutiny on NFTs means there should be less friction and more growth.
• NFTs have the lowest intuitive barrier to entry, allowing for wider adoption.
Major Opportunity in Upcoming Crypto Bull Cycle
A closely followed trader and analyst, Kaleo, believes that non-fungible tokens (NFTs) present the biggest opportunity for the market’s next bull cycle. He argues that due to lack of regulatory scrutiny on this sector it presents less friction which leads to more growth. Furthermore, he suggests that NFTs have a lower intuitive barrier to entry which enables wider adoption.
Low Regulatory Scrutiny
Kaleo points out that while companies like OpenSea and Blur may eventually face similar lawsuits as those facing Coinbase and Binance, currently they are not worth the resources of regulators due to their low market cap and sales volume compared to other crypto coins at large. This creates an environment where there is less friction in the sector, leading to more growth opportunities.
Low Intuitive Barrier To Entry
The trader further highlights how NFTs are easier for regular people understand compared to other digital assets such as random dog coins; this makes them more accessible which can result in wider adoption of these tokens.
Total Market Cap & Sales Volume
Kaleo references how the total crypto market cap is around $1.1T with NFT’s being only 1%, sitting at ~$10B. Additionally, monthly sales volumes for these tokens last month was only $809MM; representing 0.01% of total crypto coin market sales volume meaning they have yet to reach their potential despite current numbers being low by comparison.
Conclusion
Overall, Kaleo believes that investing in Non-Fungible Tokens presents a major opportunity heading into the next bull cycle as it has much room to grow given its current status regarding regulation and understanding among regular people alike; two factors important for success in any industry or asset class especially within cryptocurrencies
