Josh Fraser, co-founder at Origin Protocol, an Ethereum-based peer-to-peer (P2P) solution for enabling economic transactions without intermediaries, recently told MarketWatch he thinks cryptocurrency prices will “slowly recover.”
Fraser explained in an email to the financial information website that the “shift towards development” will “see real utility, versus speculation” in the volatile crypto ecosystem. The Clemson University computer science graduate wrote that digital currency prices will “stabilize” because of the positive trend towards “building usable” blockchain-based solutions.
Investors “Will Be Drawn Back In”
Fraser believes that “people who had written off crypto” due to low-quality projects, or outright scams, “will [gradually] be drawn back in” as the industry is starting to develop more legitimate products.
Although there are still numerous incidents of cryptocurrency fraud still being reported, according to the New York state Attorney General, investors are getting better at determining which blockchain-related projects have the potential to deliver.
“Going Long On Crypto”
As covered on CryptoGlobe, Andy Bromberg, president at CoinList, a crypto firm that conducts anti-money laundering (AML) and know-your-customer (KYC) checks for blockchain startups, said that investors are now more skilled at identifying “high-quality” projects from the “low-quality” ones.
Bromberg also predicted that digital asset prices will recover in the long-term, particularly bitcoin (BTC), as the flagship cryptocurrency’s price “is cyclical”, meaning that its brief history shows there have been “massive spikes” (both positive and negative) in its price.
Meanwhile, crowdfunding firm Republic CEO Kendrick Nguyen has chosen to “go long” on crypto as he believes its potential future impact may outweigh the “highly speculative and highly risky” nature of early-stage investing in initial coin offerings (ICOs) projects.
Crypto Markets Remain Volatile
Despite the recent positive comments on the cryptocurrency ecosystem, prices continue to decline. Bitcoin (BTC) is currently trading at $6,299 according to CryptoCompare data. Its price is down 1.27% over the past 24 hours, however, it has recovered slightly from Monday’s low of $6,213.
One of the few major cryptocurrencies that has performed well recently is the XRP token. After Sagar Sarbhai, head of government and regulation policies for APAC/Middle East at Ripple – the company behind XRP – revealed on September 17 the US-based blockchain startup was almost set to launch its highly anticipated xRapid product, the cryptocurrency surged 16%.
However, XRP’s price has retreated to around $0.3179 at press time, after reaching an intraday high of $0.3338 on September 18, its highest price level since September 2.