Raoul Pal, the former Goldman Sachs executive, suggests that the crypto market’s bullish trajectory might hinge on a critical factor. In a recent chat with Anthony Pompliano, the founder of Pomp Investments, Pal highlights the potential for a robust bull run in the crypto market driven by an upswing in practical applications for blockchain technology in the real world.
Pal emphasizes that the involvement of previous digital asset holders re-entering the scene could also play a significant role in boosting the overall optimism in the crypto sphere. Reflecting on the financialization of the millennial crowd in 2020, Pal notes the substantial number of Coinbase accounts—110 million in total. However, he points out that only nine million were active when he last checked six months ago.
Engaging with the insights from Coinbase, Pal anticipates a potential increase in activity, estimating that it could reach 35 to 40 million accounts, with a corresponding expansion at the top end. He suggests that there is still a substantial inflow of funds waiting to enter the market, particularly if those who were part of the previous wave overcome any lingering apprehensions and decide to re-engage.
Pal introduces an intriguing perspective on the evolving landscape, envisioning the current cycle as a potential “everything, everywhere all at once” phenomenon. He predicts that the application layer of blockchain technology will introduce a myriad of use cases, unlocking various features for non-fungible tokens (NFTs), inscriptions, and smart contracts. These functionalities could be applied across diverse sectors, ranging from ticketing to dealing with real-world assets.
In essence, Pal asserts that the extent of progress in the application layer will be a crucial determinant. If advancements in this area are substantial during the current cycle, he believes the crypto market could experience an expansive and diverse surge. However, if progress is limited, a recalibration may be on the horizon.