A senior executive at the tech firm building the Avalanche smart contract platform is optimistic that the crypto industry will continue to enjoy growth and adoption.
Ava Labs president John Wu says in a Fox Business interview that cryptocurrency adoption is growing despite a recent report by payment processor BitPay revealing that the Bitcoin (BTC) share of processed payments fell from 92% in 2020 to 65% in 2021.
“What we are seeing is a lot of adoption and a lot of use. In fact, in 2021 it’s estimated that there was over $3 trillion of economic activity based on transactions out there in the crypto universe.
So there’s a lot of adoption. From where I sit I’m seeing an increase in usage every single day. The momentum has not slowed down…
There’s a lot of dispersion. Yes, Bitcoin’s use case as a store of value is also not as relevant today in the investors’ minds as actual use cases.
We are seeing decentralized finance [DeFi] applications, we are seeing gaming and non-fungible tokens [NFTs] we’ve all heard about in 2021. That’s all helping with adoption.”
Wu says that the slide in cryptocurrency prices is similar to the sell-off growth stocks have experienced. Growth stocks are equities such as tech stocks that tend to look expensive but are expected to record faster sales and earnings growth relative to the market average.
“So what’s happening right now in the crypto asset class, the sell-off, it’s actually not that different from what’s happening with a lot of the growth technology stocks we saw.
The growth tech stocks started selling off in October and the crypto asset class subsequently followed in November.
But if your data adjusted to the S&P, you look at the volatility adjusted, the crypto asset class is actually holding up better than a lot of tech high growth names out there.”