- According to the pseudonymous trader, Kaleo, NFTs present a prime opportunity for gains in the next crypto bull cycle due to the lack of regulatory scrutiny.
- NFTs’ easy comprehension for average people is another advantage, which may facilitate wider adoption, contributing to the sector’s growth.
Kaleo, a respected crypto trader and analyst, is eyeing non-fungible tokens (NFTs) as a promising area for the next crypto bull run. He shared his bullish perspective with his substantial Twitter following of 590,000, pointing to the NFT market’s current low regulatory visibility as a key advantage.
“I am especially optimistic about the NFT space going into the next bull cycle because it currently faces the least amount of regulatory scrutiny,”
Kaleo stated. While he acknowledges that platforms like OpenSea and Blur may eventually come under regulatory scrutiny like Coinbase and Binance, he points out that the total crypto market cap of around $1.1 trillion overshadows the NFT market cap of around $10 billion, a mere fraction of less than 1%.
According to Kaleo, the comparatively low sales volume of NFTs — about $809 million last month, roughly 0.01% of the total crypto coin market sales volume — means the SEC is likely to focus its resources elsewhere for the time being.
“NFTs aren’t worth their resources – yet,”
The lack of regulatory scrutiny surrounding NFTs, he argues, should lead to less friction in the sector, thus fuelling more growth.
Kaleo further identifies the relatively low cognitive barrier for understanding NFTs as another strength. He contends that NFTs — digital collectibles — are easier for the average person to grasp compared to obscure cryptocurrencies.
“NFTs have the lowest intuitive barrier to entry for the average person – people understand the idea of digital collectibles. It makes sense to them a lot more than buying some random dog coin and praying,”
Kaleo pointed out.
He therefore advises against sidelining the NFT marketplace because of perceived low volume, emphasizing that it holds the potential for a major opportunity in the next cycle. In Kaleo’s words:
“Everything is boring, until it isn’t.”