Market Consolidation Is The Next Chapter Of Blockchain

Let’s face it – we are living in a world where cryptocurrencies seem like the future – yet are not tolerated in that way. In times when the crypto market acts like TV stuck in fast forward, there must be some regulation and a pace in which we would all adapt to it.

The truth is, cryptocurrency markets adhere to a psychology of disruptive technologies. In it, blockchain companies have managed to condense the preceding market trends from a few decades to a few years.

Even the research published by Morgan Stanley outlines that Bitcoin and other respective cryptocurrencies are behaving a lot like the NASDAQ did during the dot-com bubble – however at 15 times the speed.

So, what should we expect next in the crypto market?

According to the founder of Cardano and the co-founder of Ethereum, Charles Hoskinson, we are seeing a saturated market right now that wasn’t able to sustain the rising competition and the diminishing interest.

In an interview with CNBC, Hoskinson stated:

“What’s going to occur is a lot of these ventures that don’t have strong fundamentals, don’t have good tech, or just unrealistic projects, they will eventually run into some major wall they can’t quite overcome.”

A great indicator of what we can expect next is the enterprise cloud market – where blockchain companies like Ethereum, Cardano and Stellar mimic the big enterprise cloud platforms like Microsoft, Salesforce and Oracle and the ‘revolution’ they made in the early 2000s.

So, if the blockchain ecosystem continues to disrupt the cloud ecosystem (at 15 times the speed), we are likely to see an abbreviated cycle of the consolidation. At the moment, there are many mergers and acquisitions which are kept low-key. However, once the big names and platforms solidify their core products, we can expect more consolidation around the blockchain ecosystems.