While there is a slight bullish trend in the current crypto cycle, with Bitcoin (BTC) reaching a new peak above $73,000 in March, it is worth noting that this crypto cycle still appears to be different from previous cycles.

Notably unlike previous cycles, which supported new inventions, the current period has yet to introduce “transformative technologies” that typically drive mass adoption and enthusiasm, according to Blast founder Tieshun Roquerre, also known by his pseudonym Pacman.

How is this crypto cycle different from the previous one?

Pacman shared his insights during a virtual Q&A session at the Foresight 2024 event in Hong Kong, highlighting several factors that set the current cycle apart from previous ones. According to the expert, this cycle is strikingly different because it lacks the fundamental technology shifts seen in previous cycles.

Pacman elaborates further, explaining that the previous phases were marked by innovations such as initial coin offerings (ICOs), decentralized exchanges like Uniswap, and the rise of non-fungible tokens (NFTs).

Pacman added that these innovations sparked new waves of adoption and created new opportunities for capital rotation within the crypto space, boosting the market and fueling optimism.

However, Pacman pointed out that the current crypto cycle is primarily driven by external financial instruments such as exchange-traded funds (ETFs) and market pressure, rather than “intrinsic” technological advancements.

The influence of ETFs has brought about a different kind of dynamic, with more emphasis on integrating cryptocurrencies with traditional financial markets than on fostering an ecosystem driven by innovation and technology-driven developments.

When discussing the future of NFTs, Pacman believes an innovative “twist” on current models is necessary to revive the NFT market and generate new interest.

This innovation should redefine the value and utility of NFTs, just as the original concept did for digital property and art.

He compares the innovation needed to the initial disruption NFTs caused on traditional fungible tokens, creating new investment space and creative opportunities in the crypto industry.

Current cycle performance

Although the current crypto cycle is different from the previous one, it is not all bad. So far, BTC has reached a new all-time high. In addition, several memecoins have been launched and popularized in the current cycle.

This is due to the increased involvement of celebrities such as social media personality Andrew Tate, former US President Donald Trump, singer Iggy Azalea, etc. in the crypto community and the introduction of direct token launch platforms such as pumpdotfun.

Examples of popular meme coins that emerged in this cycle include NEIRO, BOME, DADDY, MOTHER, and TRUMP.

Moreover, the cycle has also seen a significant shift in the regulatory sector. Recently, XRP emerged victorious in the legal saga with the US Securities and Exchange Commission (SEC).

Earlier, Ethereum had also received approval for its spot ETFs in the US, suggesting that the regulator now views ETH as a commodity, not a security.

Main image created with DALL-E, chart from TradingView