Kaleo, a prominent cryptocurrency whale and trader, shared his analysis of an altcoin industry that could stand out in the next bull cycle.
According to the analyst, this sector will play the leading role in the next crypto bull
Kaleo previously said that the Pepe (PEPE)-triggered meme token rally would be short-lived. The crypto analyst and trader points to the NFT industry as the next “big opportunity”. NFT predicts that the next bull will quietly be the sector offering the biggest opportunity, as the market is free from regulatory pressure.
In a new Twitter analysis on the NFT market, he supported the sector’s confidence in the future with volume data…
One of the reasons I'm most bullish about the NFT space heading into the next bull cycle is that it currently has the least amount of regulatory scrutiny up against it.
Will there be a day when companies like OpenSea and Blur face similar lawsuits to what we're seeing against…
— K A L E O (@CryptoKaleo) June 7, 2023
According to Kaleo, “One of the reasons I am most optimistic about the NFT space entering its next bull cycle is that it currently has the least amount of regulatory scrutiny.”
Kaleo’s analysis came at a time when the US regulator SEC was targeting the market’s largest cryptocurrency exchanges. The SEC has designated 61 altcoins as securities in the lawsuit. BNB, ADA, SOL etc. large-volume altcoins are the main cryptocurrencies of the list. As you follow on Kriptokoin.com, the case is now combined with a new investigation at the request of US senators.
Why NFTs?
At this point, Kaleo discussed the volume data and shared a detailed analysis. According to the crypto whale, the low volume in the NFT market is keeping this industry away from regulatory pressure. According to their analysis:
Will there ever be a day when companies like OpenSea and Blur will face lawsuits similar to what we’ve seen against Coinbase, Binance, etc.? I think yes. The total value of the cryptocurrency market is approximately $1.1 million. The total NFT market cap is less than 1% of this figure and is approximately $10 billion. On top of that, the total monthly sales volume of NFTs last month was just $809 million, which is ~0.01% of the total cryptocurrency market sales volume. I mean, the SEC has a lot bigger fish to fry. NFTs are not large enough to attract attention yet.
Kaleo argues that the NFT sector, which has been out of sight due to low volume, will grow quietly. The analyst also noted that NFTs are notable for individual investment and use. These features enable easy adoption of these tokens and collectibles that ensure digital uniqueness. In the continuation of the tweet, Kaleo expresses his belief that the NFT industry is lagging behind compared to meme tokens, but that this may change in the future:
NFTs also have the lowest intuitive barrier to entry for the average person – meaning people understand the idea of digital collectibles. It makes a lot more sense than buying them a random meme token and praying. So, while it’s easy to ignore the NFT market for ‘no volume’, you will be distancing yourself from a big opportunity in the next cycle. Everything is boring until it doesn’t.
Which cryptocurrencies are in the foreground?
The largest altcoin projects in the market, which Coinecko has included under the ‘NFT Coins’ category, are as follows:
- Internet Computer (ICP)
- ApeCoin (APE)
- The Sandbox (SAND)
- Render (RNDR)
- Theta Network (THETA)
- Decentraland (MANA)
- Axie Infinity (AXS)
- ImmutableX (IMX)
- Flow (FLOW)
- GALA (GALA)
- Chiliz (CHZ)
- Enjin Coin (ENJ)
- FLOKI (FLOKI)
- Illuvium (ILV)
- Fetch.ai (FET)
- Ethereum Name Service (ENS)
- Audius (AUDIO)
- Blur
- STEPN (GMT)
- Magic (MAGIC)
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