#CFTCCryptoSprint

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Market Inflation

$ENA

According to BlockBeats, Jay Young, the founder of Ethena Labs, expressed concerns on social media about the potential depletion of capital issued for cryptocurrencies, which could prevent altcoins from surpassing the peaks of their previous cycles. He pointed out that the peaks of the nominal market capitalization of altcoins in the last two quarters of 2021 and 2024 have stabilized at around $1.2 trillion, after adjusting for inflation. Young questioned whether this represents a valuation ceiling for the globally traded capital in 99% of speculative projects.

Young highlighted a significant opportunity for tokens with real business models, which produce tangible products and generate revenue for actual users, to expand access channels to institutional investors in the stock market. Compared to the valuation of the global stock market, the altcoin market is relatively small.