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The crypto space may be moving beyond speculative cycles, as Pantera Capital highlights high on-chain activity, stablecoin adoption, and improving regulatory conditions.

Venture capital firm Pantera Capital suggests that the crypto industry could be entering a new phase of growth, with signs indicating a shift away from speculative cycles. In a Feb. 11 research note seen by crypto.news, the firm cited on-chain fundamentals, a more favorable regulatory landscape, and macroeconomic trends as key factors driving this change.

“There’s a possibility we are moving beyond the speculative boom-and-bust cycles of the early days and are now entering a phase of mass adoption and diffusion. This next chapter could embody more sustainable and meaningful growth, presenting compelling opportunities for long-term investors.”

Pantera Capital

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The Menlo Park-headquartered firm, which invested in Arbitrum, and Coinbase, among other web3 startups, noted that layer-1 blockchains are now generating $6 billion in annualized revenue, while on-chain applications bring in $10 billion and daily active addresses have reached 17 million.

On the regulatory front, the firm stated that increasing clarity may “unleash the entrepreneurial potential that has long been constrained,” describing the recent creation of a White House AI & Crypto Czar as an important step. Pantera Capital believes AI and crypto will be “the fastest and most exciting growth sectors in the world in the coming years.”

Addressing the geopolitical landscape, Pantera Capital noted that while interest rates remain a concern, fiscal policies in the U.S. and China are loosening, boosting global liquidity. As long as macroeconomic trends “align with the crypto industry’s structural tailwinds,” the firm believes the stage is “set for a period of durable growth.”