Cyclicality & What's Next

Takeaway: 1. This is the first cycle in which crypto is intertwined with the rest of the macro economy. Traditional funds and their portfolio companies agree on that each founder should limit their budget and keep improving.

As is well-known in the crypto ecosystem, the economic interest in crypto comes in waves — we have already gone through two waves of this and are in the middle of a third one. However, all through this, the ecosystem has been maturing quietly and resolutely underneath all the hype and noise. As a result, the crypto opportunity has significantly exp... See more

Markets are seasonal; crypto is no exception. Summers give way to the chill of winter, and winter thaws in the heat of summer. Advances made by builders during dark days eventually re-trigger optimism when the dust settles. With the recent market downturn, we may be entering such a period now.

how crypto fits into the current macro environment

The first decade of crypto was about finding our footing. We saw the highs and lows of an emerging asset class and a (still developing) smart contract ecosystem.

With these market conditions come implicit assumptions around the future state of crypto. For builders and investors to meet expectations over the next 5-10 years, how much market cap creation will we need to see? How much institutional capital will need to enter the space to support these assets? Where might institutions allocate? How can both bui... See more