Pantera Capital CEO Suggests Blockchain Growth Will Continue Despite Economic Turmoil
The economic outlook may look dire at the moment, but it is unlikely to affect blockchain development, according to Pantera Capital CEO Dan Morehead. In an interview for Real Vision on Thursday, the venture capitalist said that he believes that blockchain technology will work based on its own fundamentals, regardless of the conditions indicated by traditional risk metrics:
“Like anything disruptive, like Apple (NASDAQ:) or Amazon (NASDAQ:) stock, there are short periods of time where it’s correlated to the S&P 500 or whatever risk metric you want to use. last 20 years, it’s done its own thing. And that’s what I think is going to happen with blockchain in the next ten years or whatever, it’s going to make its own history based on its own fundamentals.”
During the first half of this year, Pantera Capital raised around $1.3 billion in capital for its blockchain fund, with a special emphasis on scalability, DeFi, and gaming projects. “We’ve been very focused on Defi the last couple of years, it’s building a parallel financial system. Gaming is coming online now and we’ve got a couple of hundred million people using blockchain. There’s a bunch of really cool gaming projects out there, and there are still many opportunities in the scalability sector,” he added.
However, the long-term optimism contrasts with the real decline in private equity in the sector. August saw the fourth consecutive month-on-month decline in capital, down to $1.36 billion, according to data from Cointelegraph Research. Inflows represent a decrease of 31.3% compared to USD 1,980 million in July, with 101 operations closed in August, with an average capital investment of USD 14.3 million, 10.1% less than in July.