Only Stellar, EOS and Dogecoin had daily active addresses this year till date: Tom Lee
Tom Lee, head of research and co-founder of the independent research firm Fundstrat, recently shared his view on the cryptocurrency market.
The recent interview appeared on YouTube’s Crypto Tips, where Lee started by stating that the market is overflowing with speculators. According to Lee, “In general, when people in traditional markets look at crypto they think this is purely speculation and the only reason why people buy crypto assets is speculation.”
He believes that a lot of people believe there’s something wrong with traditional financial systems, and are trying to re-architect it. However, what people overlook often is that in traditional markets, be it stocks or bonds or currency or gold or oil, one can measure the amount of money is traded on speculative purposes versus actually-used purposes.
Lee said, “Crypto today is only 4:1. So the amount of speculation is quite low relative to the actual on-chain, compared to other markets.” While he believe that there are legitimate criticisms in the space, there is a possibility of unethical behaviour which include exploitation and scams.
“There’s potential for someone to be unethical because these are bare instruments and it’s anonymous, but I would say that it’s not true that just because these features exist that it’s only used by criminals,” he explained.
Lee also shares his view about adoption and increase in daily active users. He said, “Year-to-date only three tokens have had an increase in daily active users, what we call daily active addresses, which is Stellar Lumens, EOS and Dogecoin. And they’re the three best-performing tokens this year.”
He added, “Another one that I think bares – even in the face of skepticism – maybe deserves some credit, is something like XRP, because there is a very active community there. I haven’t spent enough time, so I can’t really say, but it shows that sometimes we just have to follow the data.”
Image via Shutterstock