The crypto space has cooled off for many various reasons and the market cap is likely to decrease over the next few months, perhaps even a year. Here are some of the trends that drive the current market.
Early adopters who made money exited — there were a lot of people who were never interested in the underlying technology or disruption. Once they have earned enough they simply exited their positions or even left the industry and are unlikely to come back.
Smaller and less frequent successful ICOs — there is very little new money flowing into the crypto space, we only see more calculated investments from some accredited investors happening in private presales. Retail investors are mostly out of the picture due to tighter regulation and less attractive returns.
STOs are very different and not ready — WeТll soon see an influx of new security tokens, but their nature will be different. If a security is designed correctly itТs not supposed to grow 10x in a few months. This means that even if some large assets are tokenised (e.g. large real estate portfolios) this wonТt create the same level of excitement because of the more stable nature of these type of assets.
Better understanding — the understanding of crypto and blockchain is more normalised. More users are able to understand the need for regulation and gauge the feasibility of more idealistic ideas. This less emotional and more realistic approach removes the speculative forces that were mostly driving the overly excited market so far.
In these times good companies focus on delivery and regrouping. Those who are in the technology business for the long term wonТt be affected by these short term trends, and will create sustainable businesses that are less dependent on the price of the coins.