Cardano's Hoskinson Reveals the Way Forward for Crypto Market, Shares Optimistic Expectations

Cardano co-founder Charles Hoskinson believes the current crypto market downturn is unlikely to persist, arguing that the market has shifted far beyond the retail-driven cycles of previous years.

Speaking in a recent interview, Hoskinson noted that the arrival of major financial institutions and the U.S. government has fundamentally changed the market’s structure and its long-term trajectory.

Responding to a question about whether a more crypto-friendly U.S. administration could soften the impact of the current drawdown, Hoskinson said this cycle stands apart from earlier ones. “The last three times it was retail-led,” he explained. “But this time around, you have BlackRock and Goldman Sachs and Morgan Stanley and the U.S. government, all others coming in.”

The Cardano co-founder added that a growing portion of crypto now represents real-world assets, pointing to the rapid expansion of stablecoins, which have surpassed $250 billion in issuance and could exceed $1 trillion by 2030.

Hoskinson also highlighted projections that between $10 trillion worth of equities and other traditional assets could move on-chain by the mid-2030s. Combined with a potential rise in global crypto users from 550 million today to nearly one billion, the sector’s foundation is stronger than short-term sentiment suggests.

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“There’s no way for these markets to stay depressed forever,” Hoskinson said, framing current prices as a reflection of macro uncertainty rather than deteriorating fundamentals.

That uncertainty is visible on market dashboards. The Crypto Fear and Greed Index recently plunged to 6, one of its lowest readings ever. Meanwhile, analysts noted that short-term profit-and-loss metrics have fallen even more sharply than during the COVID-19 and FTX crashes.

Nevertheless, some analysts are calling the downturn an opportunity, urging traders to “buy the dip.”

Meanwhile, Bitcoin and Ethereum are flashing mixed signals. Bitcoin wavers between institutional outflows, renewed whale accumulation, and questions surrounding its upcoming quantum-resistant upgrade. 

Ethereum faces regulatory delays, proposed staking reward cuts, and persistent whale buying even as retail holders exit.

At the time of writing, the crypto market stands at a total valuation of $2.96 trillion.