Gracy Chen, CEO of the cryptocurrency exchange Bitget, made noteworthy statements regarding the future of the altcoin market. Arguing that the cryptocurrency sector struggles to innovate internally, Chen specifically noted that many Layer-1 and Layer-2 projects have failed to create real-world use cases. The experienced executive also warned that Bitcoin could face significant risks under current market conditions.
In an interview with New Era Finance, Chen assessed the development of the cryptocurrency sector in recent years, stating that despite its increasing integration with traditional finance, the sector has not been able to generate enough innovation within its own ecosystem.
According to Chen, some blockchain projects that have reached market capitalization of billions of dollars have a very limited user and developer base despite their high valuations. The executive added that the number of daily active developers on some networks remains in single or double digits.
Chen stated that the problems in the altcoin ecosystem are not limited to blockchain infrastructures alone, adding that sectors like GameFi, SocialFi, and NFTs, which generated great expectations in the past, have also failed to deliver on their promises.
Chen stated that SocialFi projects haven’t been able to truly compete with platforms like Facebook or TikTok, and that blockchain-based games struggle to compete with traditional games, adding that many projects in the NFT sector are failing to generate lasting value.
Chen stated that the number of projects capable of ensuring long-term sustainability in these sectors is quite limited, and that many initiatives have lost their operations or are gradually weakening.
However, the Bitget CEO is not entirely pessimistic about the future of the cryptocurrency sector. According to Chen, the biggest opportunities for the sector lie in the integration of the traditional financial system with blockchain technology.
Chen argued that areas such as stablecoins, real-world asset tokenization (RWA), and cross-border payments have strong growth potential, noting that these technologies offer solutions to concrete problems.
Chen added that for the cryptocurrency sector to regain strong growth, it needs to develop applications that respond to real user needs.
2022 Warning for Bitcoin: Could Another Crash Occur?
In the interview, Chen also evaluated Bitcoin’s current price movements, noting that optimism in the cryptocurrency market changes quite rapidly.
Chen argued that the recent rise in Bitcoin’s price was not supported by an equally strong improvement in fundamental indicators, and stated that he did not define the current market situation as either a classic bull market or a traditional bear market.
Chen described the current period as a “monkey market” due to the constant up and down of prices.
Bitget CEO, particularly warning investors about highly leveraged trading, stated that Bitcoin could experience sharp price movements in the near future.
According to Chen, considering Bitcoin’s four-year cycle, the year 2026 has characteristics similar to the bear market of 2022 rather than the beginning of a new bull market.
Chen stated that if this similarity continues, a new unexpected event similar to the FTX crash could occur, warning that such a development could push the Bitcoin price to even lower levels.
On the other hand, Chen believes that Bitcoin has significant upside potential in the long term. The executive stated that if developments such as growth in the global money supply, institutional adoption, and countries starting to use Bitcoin as a reserve asset occur, Bitcoin has the potential to reach $1 million by 2035.
