The global financial system is the 'net new buyers' this cycle — Chainlink founder

Ciaran Lyons3 hours agoThe global financial system is the "net new buyers" this cycle — Chainlink founderChainlink founder Sergey Nazarov pointed out the significant new crypto buyer group while eyeing off the next development in the crypto market, real-world asset tokenization.1733 Total views13 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksIn a recent interview, Chainlink (LINK) founder Sergey Nazarov stated that the current cryptocurrency market cycle is unique due to the sheer amount of new types of investors entering the market, which may fast-track the adoption of real-world asset tokenization quicker than the industry initially anticipated.

Speaking to Bloomberg on February 28, Nazarov emphasized that the recent participants in the crypto market extend beyond retail customers who respond to mainstream media coverage of crypto"s price fluctuations. He explained that the new buyers come from all sectors of the global financial system:“The question to ask is who are the net new buyers in this cycle, and the net new buyers is the global financial system, which is a very, very big group of net new buyers.”

In October 2023, Cointelegraph reported that the United States government is one of the largest Bitcoin (BTC) holders with over 200,000 BTC. At the time of publication, this is worth approximately $12.4 billion.

Nazarov further explained the recently approved Bitcoin exchange-traded fund (ETF) products is just the beginning of facilitating easier access for funds to enter the market.

“The Bitcoin ETF is just an initial offering that allows the global financial system to have basic investment rails and payment rails towards Bitcoin within structures that they find comfortable for them," he stated.Chainlink founder Sergey Nazarov speaking on Bloomberg Television. Source: Bloomberg

Meanwhile, Nazarov forecasts that real-world asset tokenization will be the next major trend in the crypto market.

“The next stage is asset tokenization where banks see all these inflows into ETFs and then they make assets to compete with the ETFs or to get some of that capital," he declared.

Since the approval of Bitcoin ETFs on January 10th, there has been a surge in the influx of funds into the crypto sector, not only into Bitcoin but the overall crypto market as well.

Related:Bitcoin metric repeats bull move that saw up to 1,900% BTC price gains

On Feb. 26, Cointelegraph reported that crypto investment products saw inflows totaling $598 million from institutional Bitcoin investment products over the previous seven days.

Lead analyst for Australian crypto exchange Swyftx, Pav Hundal, told Cointelegraph that the recent strength in meme coin prices was driven by the communities supporting the projects. 

He also emphasized he will be keeping a close eye on an upcoming upgrade in Shibha Inu"s (SHIB) main network.

“We expected Shib and Doge to run quickly due to the sheer size and conviction of their communities. But we’re also closely watching the impact of forthcoming upgrades to Shib’s mainnet, which is going to start burning tokens on transactions,” he stated.

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