• Pseudonymous trader Kaleo is bullish on non-fungible tokens (NFTs).
• The sector has the least amount of regulatory scrutiny right now.
• NFTs have the lowest intuitive barrier to entry for regular people.
Opportunity in Crypto: Non-Fungible Tokens (NFTs)
A widely followed analyst and trader, Kaleo, believes that there is a major opportunity for the crypto market’s next bull cycle in non-fungible tokens (NFTs). He cites several reasons why this is so, including a lack of regulatory scrutiny and an easier intuitive barrier to entry for regular people.
Why NFTs?
Kaleo argues that one of the main reasons he is bullish on NFTs is because they are not currently on the radar of regulators. This means that there could be less friction in this sector compared to more heavily regulated coins and tokens. Additionally, he points out that NFTs make sense to regular people more easily than other coins or tokens do, so wider adoption could result from their simpler concept.
Regulatory Scrutiny
The total cryptocurrency market cap is around $1.1 trillion while the total NFT market cap sits at about $10 billion – only 1% of the former’s value. Moreover, monthly sales volumes for NFTs last month were only 809 million – 0.01% of the total crypto coin market sales volume. Because of these numbers, Kaleo believes that regulatory bodies have bigger fish to fry than non-fungible tokens – for now at least!
Low Intuitive Barrier
The pseudonymous trader also believes that NFTs have a lower intuitive barrier to entry for ‘regular people’ compared with other coins or tokens which may be harder to understand or relate to. This makes them an easier sell and could lead more people towards investing in them if given an easy enough way into it.
Conclusion
Kaleo ultimately encourages others not to ignore the low volume currently circulating within the NFT marketplace as it could offer major opportunities during next bull cycle if wider adoption takes off due its lower intuitive barrier and lack of regulation right now