The crypto market stands on the verge of a radical transformation. This becomes more salient seeing that the industry is set for significant changes – with new technological trends coming up, and with strengthened role of crypto in the global economy.
What alterations are brought up to the industry, and how do they impact the market? To solve this puzzle, I spoke to Mikołaj Zakrzowski – a Global Traders on-chain analyst with experience at CryptoQuant, who shared his insights on the new age of crypto industry.
– Mikołaj, you’re an on-chain analyst. For the newbies, could you explain what the on-chain analysts do? Do they monitor technical data, interpret it, or all together?
– What all on-chain analysts have in common is using publicly available data from various blockchains, though goals of different analysis may differ. On-chain data may be used to:
- explain what is currently happening under the hood based on concrete data points, as at the end of the day an opinion is worth as much as data that backs it up;
- perform wallet investigations (sometimes with the aim of tracing illicit funds);
- gain market advantage, in various ways. For instance, on-chain analysts may look at cyclical transaction patterns to identify suitable buying and selling opportunities.
It is a very broad and diverse field.
– Apart from investment and security purposes, why on-chain analysts are vital for the industry?
Aside from using on-chain analysis for trading, on-chain analysts such as @zachxbt are vital for the crypto industry as they make the industry more transparent and safe. For instance zach is known for publicly revealing many complex scams that took place in the crypto space. Such investigations are useful as crypto space is getting rid of bad actors + bad actors are properly punished.
– Do new technological advancements really influence the market from the technical point of view, or do they mainly impact the investment behaviour?
– I'd say the market is mainly driven by different narratives and crypto space hasn't matured to the point of proving its killer use cases. (aside from BTC which has its killer use case).
– We see that the smaller Web3 ecosystems surpass large networks in developer quantity. While Ethereum and Solana remain leaders in TVL, many investors cast their eyes on Celestia, Whitechain, and other networks. What do you think, why is such a tendency taking place?
– Apparently Solana and Ethereum are shipping products that are deemed as more valuable by a broad range of investors. Developers count doesn't matter as the price increase or growth is TVL is dependent on the perceived utility of the project.
– Seeing that Web3-solutions’ tokens become even more popular, would you say that investors turned to prioritising asset’s utility within tokenomics/market analysis as a sort of fundamental factor?
– Crypto space definitely has not matured enough to really care about tokenomics and other fundamental factors. Most price action is heavily narrative based.
– Which market would you personally like to see: the one with diverse token’s leadership, or monopolistic/oligopolistic market with dominance of a few large assets? Why?
– I'd like to see a more diverse market as it makes the whole crypto space less volatile. On the other hand, when we have coins such as USDT dominating the stablecoin market, if something goes wrong then the whole crypto market will face severe consequences.
– Amidst ecosystem rally, memecoins have also been receiving a great deal of attention to them, which can be indicated by their market capitalization. What is your attitude to memecoins – can they be perceived as safe, full-fledged assets?
– Major meme coins are safe in the sense that there are no smart contract risks involved and so on. On the other hand, they are risky in the sense of their volatility.
– Do memecoins actually provide liquidity for the blockchains they are developed on?
– Yes, a good example is meme coin mania on Solana which drove a lot of traction and liquidity to Solana blockchain.
– The reason behind memecoins’ solid market positions is often explained to be the community-driven nature of the tokens. Why do you think memecoins are heavily invested in?
– Crypto people love gambling and socializing through gambling makes the case for meme coins even more compelling.
– Let’s go back to the Web3-ecosystems’-based cryptocurrencies. Seeing that technological utility seems to play a crucial role as an investment criteria, is there any chance Bitcoin will be overtaken by Ethereum in terms of value and market capitalization?
– I don't see it coming, the value propositions of ETH and BTC vastly differ.
– Has Bitcoin become to rely more on the fundamentals, but not the technical factors?
– Bitcoin is mainly driven by liquidity cycles within macroeconomy.
– Amidst upcoming halving, can scarcity be reviewed as an important factor of Bitcoin price?
– I wouldn't say so, halvings only coincide with increases in Bitcoin price, they do not create price surges. As I mentioned earlier, Bitcoin is mainly driven by global liquidity cycles
– What is the future of Web3 and crypto intersection?
– The future of web3 is probably Bitcoin constantly increasing its market cap while other projects are facing dynamic battles for the best value proposition and product market fit.
Paul Osadchuk
