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Dan Tapiero, a renowned macro investor, has recently articulated a strong conviction regarding the imminent widespread adoption of cryptocurrency technologies. Tapiero is the Managing Partner and CEO at 10T Holdings, which is a growth equity fund focused on investing in mid-to-late-stage digital asset ecosystem (DAE) companies. Portfolio companies include Ledger, Nova Labs (which develops the Helium blockchain), and Animoca Brands.
In a conversation with former Goldman Sachs executive Raoul Pal, who is currently the CEO of Real Vision, Tapiero highlighted the increasing interest of traditional retail and financial giants in the digital asset space, a move aimed at enhancing their business models.
Tapiero pointed out that this burgeoning interest in crypto and blockchain technologies marks a stark contrast to the previous bear market. He emphasized that we are currently witnessing the beginning of mainstream, traditional corporate adoption of Web3, blockchain, and digital assets. He notes that unlike the end of the last bear phase, where such interest was minimal, today’s landscape features major corporations like Adidas, LVMH, and Nike exploring the integration of non-fungible tokens (NFTs) into their business models.
He also points out that financial behemoths such as Franklin Templeton, Fidelity, and BlackRock are also showing a keen interest in the sector. According to Tapiero, while these institutions have not yet commenced significant buying in the space, their demand for products like ETFs (exchange-traded funds) signals a strong commitment and interest in digital assets. Tapiero believes that this is just the beginning of a broader understanding and appreciation of the digital asset ecosystem (DAE), which he envisions will eventually encompass the digitization of all value, with every asset finding a place on a blockchain.
Tapiero predicts a substantial explosion in the digital asset space as traditional capital begins to flow into the market. He refers to the current market cycle as “the adoption cycle,” highlighting the significant cash flow within protocols like Ethereum, which has rapidly achieved substantial revenue milestones. However, he notes that this type of revenue is different from what traditional investors are accustomed to.
Last month, in a discussion with Coin Bureau host Guy Turner, Tapiero emphasized the quick-paced adoption of digital assets and its potential for continued expansion. He noted that the crypto industry has experienced substantial growth, particularly over the past four years
Tapiero recalled that when he initially conceptualized his crypto fund in mid-2019, the entire cryptocurrency market was valued at $300 billion. This internal metric encompasses both cryptocurrency and equity values within the crypto space. Fast forward to 18 months ago, this value skyrocketed to $3.2 trillion and currently sits at $1.7 trillion. He stressed that even though the market has receded from its peak, it has still grown fivefold over the last four years, equating to an approximate annual growth rate of 100%.
The expert further discussed the enormous potential that exists in the crypto realm, specifically in the tokenization of real-world assets (RWAs) on blockchains. Tapiero mentioned that the trend of asset tokenization has gained considerable attention over the past six months. During this time, the value of tokenized assets has surged from $100 million to $800 million. While this is a significant increase, Tapiero pointed out that it barely scratches the surface given that hundreds of trillions of dollars worth of assets exist globally.
Another emerging market segment that Tapiero highlighted was stablecoins. He explained that just three years ago, the stablecoin market was virtually nonexistent. However, in 2022, stablecoins recorded an astonishing $8 trillion in settlements. This is a dramatic growth metric by any standard, especially when compared to traditional financial instruments.
Tapiero concluded by stating that the crypto industry is currently evolving more rapidly than at any other point since his involvement. He cited an influx of innovative ideas, new products, and a variety of use cases, particularly in the realm of decentralized finance (DeFi), as evidence of this accelerated growth.
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