Opinion is divided on whether the current price rout faced by cryptocurrencies is similar to that experienced by the industry in 2022, experts say.
Three years ago, there was a series of cataclysmic events in the crypto industry, including the collapse of Luna, Three Arrows Capital imploding and FTX, one of the largest exchanges in the world, found to be committing fraud.
Anish Shivdasani, head of digital assets at global consultancy Roland Berger, said at the Binance Blockchain Week in Dubai on Wednesday: “If we look at today, I would argue we're not in a slump. Bitcoin is at $90,000.
"Yes, it got to $126,000 but we're used to having huge drawdowns in bull markets. If you look at the reasons for this drop, they don't compare with the last cycle because the fundamentals are more solid now.
“The crypto exchanges are more solid, there is large-scale institutional adoption and huge buyers of exchange-traded funds, not just Bitcoin but Ethereum, Solana and other chains, too," he added. "We also have digital asset treasuries now, like Strategy and Metaplanet, and much more stable infrastructure.”
Navin Gupta, chief executive of blockchain analytics platform Crystal Intelligence,
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