One of America’s most popular investors, and a big supporter of the cryptocurrency market, has commented on the current situation. In his opinion, the cryptocurrency winter is likely to end with the development of apps, which must become much more useful.
The biggest drop in history
Many investors point out that such a bear market as is currently being recorded, Bitcoin has not experienced before. Last month ended with the second highest decline in history (-37.3%). The previous such deep correction took place in September 2011. In addition, for the second time in history, the BTC price ended the 30-day period below the 200-week moving average. This time closing at a record low (-11.4%) in relation to it. Some analysts see this as a chance to reverse the trend. Far from optimism, however, is Mark Cuban. However, he does not stop looking for a factor that could fuel a new upward wave. In his opinion, it will be applications.
Time for usability
According to the popular billionaire, while most cryptocurrency applications are geared toward collectibles and financial technologies, the usability aspect is being neglected. In his opinion, the market needs a spark precisely in this area. Thus, Cuban is betting on apps that focus on real business.
As an example, the billionaire used the decentralized QuickBooks brand. It’s accounting management software. Thanks to its usability, it creates a real difference in the market. As he concludes, the greater the growth of similar solutions we see, the greater the chance of turning around the bearish trend.
Cuban shared this opinion in a June 23 episode of the Bankless Podcast. In it, he made it clear that the bear market will continue until there is a strong catalyst for growth. If, on the other hand, there is no such thing, current prices could settle even lower.
The market is still highly valued
Continuing his speech and answering further questions, Cuban noted that the cryptocurrency market, despite strong declines, is still not cheap. While many analysts believe that Bitcoin has already reached the bottom of its valuation, Cuban suggests that this is not the end of the discounts. He drew particular attention to the DeFi segment and the famous DeFi Summer, which led to a multiplication of the valuation of a huge number of projects. Moreover, he points out that some of them, despite a significant increase in their value, still suffer from a lack of marketability.