US-based investment bank Jefferies has released an intriguing new report on cryptocurrencies. Here are the details.
US-based investment bank Jefferies, in its report prepared for large institutional investors, likened the development stage of the cryptocurrency market to the internet era in 1996.
The bank argued that the sector still has ample room for growth.
Analysts say an excessive focus on Bitcoin prices could overlook the disruptive potential of blockchain technology across various sectors. Jefferies noted that some institutions have already begun investing in the space through exchange-traded funds (ETFs) and digital asset treasuries (DATs).
The report recommends that investors focus on long-term benefits and selectivity of projects, similar to strategies used in the early internet era.
Jefferies compared the crypto market to “1996,” recalling Wall Street’s state in the early years of the internet, and noted that a new wave of growth in crypto assets is still in its infancy.
Jefferies’ proposed strategy is to analyze tokens like early-stage tech startups and prioritize “adoption, development, usage, and use cases” rather than the temporary revenue boosts of some blockchains.
