John Woo: Large holders of stablecoins are ready to enter the crypto market

The head of the Avalanche platform believes that despite the fall in the cryptocurrency market due to the correlation with stock assets, crypto investors expect “cosmic profits”.

Avalanche (AVAX) CEO John Wu said in an interview that large investors continue to look at the cryptocurrency market. We are talking about institutional investors who own stablecoins.

Wu added that the fundamentals of the crypto industry are solidifying despite the sharp decline in market capitalization last year. According to Wu, stablecoin holders will reinvest in order to make significant future profits:

“The market needs to understand that in the crypto-asset space, investors will receive more than the average return on the market, the so-called alpha. There are very good reasons for this. The market capitalization of cryptocurrencies has fallen, but stablecoins have not. This suggests that many investors hold them and are ready to deploy stablecoins in the market.”

Wu believes that the Ethereum merger will generate alpha gains regardless of whether the value of Ethereum and Bitcoin (BTC) falls due to Nasdaq correlation:

“It’s a huge catalyst. Regardless of the correlation and direction of the market, investors will reap cosmic profits. Personally, I think the winter will last a little longer, but what I’m really looking forward to is new applications. Protocols that literally redefine how a business will be built and run. What you can do when tokenization is in full swing is to code the business logic into a smart contract and the platform itself becomes your business.”

He cited Uniswap (UNI) as an example, where more liquidity is recorded per user daily than on the centralized giant Coinbase.

Dallas Mavericks owner Mark Cuban also believes that most
companies using NFT and DeFi will leave the market, and only those that have unlocked the potential of smart contracts will remain.