In a report prepared for large institutional investors, Jeffries, a US-based investment bank, compared the development phase of the cryptocurrency market to the Internet age in 1996.
The bank argued that there was still plenty of room for growth in the sector.
Analysts say that excessive focus on Bitcoin prices could overlook the disruptive potential of blockchain technology in various sectors. Jefferies noted that some agencies have already begun investing in space through Exchange Sales Funds (ETFs) and the Department of Digital Asset Treasury (DATS).
The report recommends that investors focus on the long-term benefits and selectivity of the project, as well as the strategies used in the early Internet age.
Jeffries compared the crypto market to “1996,” recalls the early state of Wall Street on the Internet, noting that the new wave of growth in crypto assets is still in its early stages.
Jefferies’ proposed strategy is to analyze tokens such as early-stage tech startups and prioritize “employment, development, use, and use cases” rather than temporary revenue growth for some blockchains.
*This is not investment advice.
