October 6, 2022

Pantera Capital CEO Dan Morehead says the three overlooked crypto projects are showing impressive strength in the face of an overall downtrend in digital asset markets.

In the new CNBC interviewMorehead says he sees cryptocurrency as a disruptive technology that will see billions of new users regardless of the short-term volatility of Bitcoin (BTC) and Ethereum (ETH).

“I think it’s important to remember that crypto is such a disruptive thing that it’s going to change many aspects of our lives over the next few decades. It’s in a secular bull market and occasionally gets caught up in these cyclical dips in risky assets, but I can easily see a world in a few years where risky assets themselves may still be in trouble, but blockchain is back to its highs and doing its thing on the basis of its own foundations.

And that story is that hundreds of millions of people are using blockchain today. I think in four or five years it will be literally billions of people. And the way to value things is supply and demand. If you have a billion people wanting to buy a fixed number of coins, the price is likely to go up.”

Morehead, who oversees about $4.5 billion in assets under management, says one sign of the crypto industry’s strength is the number of projects outside of Bitcoin and Ethereum that are gaining traction and continuing to gain market share.

He lists three notable projects he has on his radar, including Ethereum-based decentralized exchange (DEX) Uniswap (UNI)the Near Protocol decentralized application (DApp) platform (NEAR) and DEX aggregator 1 inch (1 INCH).

“We are all used to using Bitcoin as a proxy for the blockchain. There are hundreds of really interesting projects and many of them are coming together and doing well. A great statistic is how the percentage of our entire market that is not Bitcoin or Ethereum hit a record 43% yesterday, and the last five years average was 20%. While Bitcoin and Ethereum are just a bit on the low side, there are many cool projects like Near Protocol, UniSwap, 1 inchthese are well above their minimums.”

The crypto veteran predicts that at some point soon, crypto assets will break their correlation with the broader financial markets.

“I think cryptocurrency got caught up in the global macro sell-off across all asset classes, and then there was a bit of excess leverage in the system during May and June. I think most of that is taken care of. And in the next few months, cryptocurrencies may start trading independently of risk assets.”

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