Pantera Capital anticipates a superior performance from altcoins with established protocols in the forthcoming cycle.
Pantera Capital, a cryptocurrency investment firm, has stated in a recent report that tokens with strong underlying protocols and proven product-market fit are expected to outperform in the upcoming cycle. The firm draws a parallel to other asset classes, such as equities, where strong fundamentals and market fit are key indicators of success.
While Pantera Capital did not specify which tokens they are referring to, they emphasized that long-term token selection will be crucial for outperformance. They believe that success will be determined on a case-by-case basis, rather than being limited to a specific sector or driven by short-lived speculative narratives.
In addition to this analysis, Pantera Capital’s managing partner, Paul Veradittakit, shared his predictions for 2024. He highlighted several key factors, including Bitcoin’s anticipated renaissance due to the fourth halving scheduled for April, the potential approval of spot Bitcoin exchange-traded funds by institutional investors, and advancements in programmability features.
Beyond Bitcoin, Pantera Capital expects the growth of decentralized finance (defi) on the Bitcoin blockchain, with the total value locked on the platform potentially reaching 1-2% of Bitcoin’s market cap. They also anticipate a shift from finance to social experiences in web3, with experiments in tokenized social interactions and the emergence of bridges connecting traditional finance with defi.
Pantera Capital believes that the cryptocurrency industry has weathered the most challenging phase of the bear market and has now entered a new chapter. They assert that the industry is no longer solely focused on financialization but is expanding to redefine consumer, social, and developer experiences using blockchain technology.
Overall, Pantera Capital’s report provides insights into their expectations for the upcoming cycle, highlighting the importance of strong underlying protocols, product-market fit, and long-term token selection for outperformance.
