Could Institutional Investors Start Making Altcoin Purchases? Blockfi’s Vice President for Europe and Asia, David Olsson, mentioned liquidity as part of the consideration.
Some digital assets in the market, including newer ones, can be high in volume at times. “The question is how long this can be sustained,” said Olsson during a CfC Moritz conference segment on Wednesday, adding:
“Chainlink (LINK) is one that has held a decent volume over time, but a lot of them tend to be the next bigger and then they gush out and the volume goes away.”
Ethereum (ETH) is just below Bitcoin, with a market capitalization of around $ 152 billion. Tether (USDT) ranks third at around $ 24 billion and Polkadot (DOT) ranks fourth at around $ 15 billion. At number 100 on the list, Lisk (LSK) has a market capitalization of around $ 186 million. Thousands of other crypto assets have market caps descending from there.
Olsson said of future altcoins:
“So I think from our trading desk perspective we really want to see a year long trading history where market capitalization is around $ 1 billion and that’s at least $ 100 million a day sources of liquidity in terms of the exchanges which they are traded reliably. ”
However, the crypto industry still has its skeptics, including billionaire Mark Cuban, who recently compared crypto assets to the dot-com bubble of the late 90s and early 00s.