VanEck Digital Asset Research Head "Fundamentals Account for Only 10% of Cryptocurrency Prices"
Summary
- The head of VanEck research stated that fundamentals account for only 10% of cryptocurrency prices.
- He noted that the influence of capital flow is significant when comparing the market capitalization of XRP and Ethereum (ETH).
- VanEck is reportedly selecting ETF launch projects with a cautious strategy.
An analysis has emerged indicating that fundamentals account for only 10% of cryptocurrency prices.
Matthew Sigel, head of digital asset research at the American asset management firm VanEck, attended the Blockworks Digital Asset Summit (DAS) on the 20th (local time) and stated, "Previously, it was believed that half of token prices were determined by capital flow and the other half by fundamentals." He added, "However, now 90% is determined by capital flow, and only 10% is attributed to fundamentals."
He further explained, "This becomes more evident when comparing the market capitalization of XRP and Ethereum (ETH)," adding, "Many competitors have submitted single token ETF applications to the U.S. Securities and Exchange Commission (SEC) this year."
Additionally, he mentioned, "VanEck is taking a more cautious and proactive strategy," and "is selecting projects to launch ETFs based on these criteria."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
