Millionaire investor Mark Cuban has tipped commercial smart contract adoption because the next catalyst they are driving the crypto and blockchain sector.
The Dallas Mavericks owner and crypto proponent was commenting around the current “lull” condition from the crypto market as compared to the internet or us dot com bubble in early 2000s, which saw lots of over-hyped and comparatively similar companies collapse.
The crypto marketplace is painting a fairly harsh picture recently with almost all of the very best 100 digital assets facing double-digit losses in the last 7 days.
There could be several reasons for the bearish sentiments, like the Federal Reserve’s recent policy updates. However, on Twitter earlier today Cuban also pointed to some current “imitation phase” in crypto/blockchain instead of genuine innovation.
“Crypto is studying the lull the internet experienced,” he stated.
Crypto is studying the lull the internet experienced. Following the initial rush of exciting apps, NFTs, DeFi, P2E, we had the imitation phase as chains subsidized the movement of individuals apps for their chains (ala bandwidth and storage subsidies by startups within the 2000s)
— Mark Cuban (@mcuban) May 9, 2022
In Cuban’s view, the blockchain projects that purely “copy what everybody else has” by bridging over NFTs to DeFi protocols will die eventually, because he argues that they’re not needed on every chain.
Rather, he opined that smart contract platforms aimed at commercial usage and replacing software like a service (SAAS) apps will thrive lengthy term:
“What we’ve not seen is using Smart Contracts to enhance business productivity and profitability. That must be the following driver. When companies may use Smart Contracts to achieve an aggressive advantage, they’ll. The chains that realize this can survive.”
When it comes to recent institutional backing of smart contract platforms, CoinShares’ crypto funds report its 2021 shows that Ether (ETH), Solana (SOL), Polkadot (Us dot), and Cardano (ADA) were the choices preferred by the heavy hitters this past year.
Based on the report, funds offering contact with ETH were the resounding favorite, garnering an astonishing $1.38 billion, next lined up were Solana funds at $219 million, Polkadot products generated $116 million, and Cardano funds also taken in $115 million.