The situation in the crypto market is far from ideal. With the crypto winter going strong for the 11th month in a row, many enthusiasts started losing faith. However, the situation is certainly not as bad as some media pundits are trying to paint it. You see, many companies are making moves in the blockchain and crypto industry despite the overall bear market and poor predictions from so-called analysts. So what is happening?
The upcoming Act may change everything
Bear Runs are not scary for people who have been invested in the industry for a long time. Bitcoin managed to survive many winters. Moreover, this particular one does not seem like something that BTC holders should be afraid of considering the sheer size of the blockchain network and its immense value for investors and users. It is simply too big to fall.
The problem is that many other ecosystems that do not have the same legs as the flagship token of the whole industry may struggle way worse and arrive at the end with a really big bag of issues including losing interest from investors, bankruptcy, and more.
Charles Hoskinson believes that nothing of the sort will happen. He thinks that the soon-to-be voted-on Financial Innovation Act that was proposed by Senator Cynthia Lummis can change the world and introduce crypto to a whole new army of institutionalized investors. The Act aims at solving many issues with crypto and the market around it. It will guide the US government in the process of creating a strong framework allowing more investors to safely put their money in innovative fintech platforms.
The industry needs positive cash flow now
Ethereum has been bleeding cash for several weeks now. The merge with the Beacon network not only didn’t help, it seemingly created an even deeper pit with ETH losing over 12% over the first six hours after the conclusion of the merge and over 21% since September 15.
Other DeFi projects have been struggling with cash flow as well. Only Bitcoin and several other projects managed to keep it positive. The Financial Innovation Act will surely solve this problem.