Bitcoin and Crypto Entering ‘Existential Crisis’ As DeFi Moves From Niche Experiment To Wall Street: Arca CIO

Core Viewpoint - The chief investment officer at Arca, Jeff Dorman, expresses skepticism about the future value of Bitcoin and other digital assets, suggesting that the recent surge in asset tokenization may not benefit these cryptocurrencies significantly [1][3]. Group 1: Market Trends - Dorman highlights that the current trend in blockchain applications, such as the NYSE's plan for a tokenized securities platform, may only benefit a select few entities rather than the broader crypto ecosystem [2]. - He argues that the "fat protocol thesis" is no longer valid, indicating that Bitcoin lacks connection to the growth of stablecoins, decentralized finance (DeFi), or real-world asset (RWA) tokenization [3]. Group 2: Value Accrual - According to Dorman, the value from the increasing use cases of blockchain is primarily accruing to intermediaries like BlackRock, Securitize, and Tether, rather than to Bitcoin or other cryptocurrencies [5]. - He identifies a limited number of clear winners in the DeFi space, suggesting that only a handful of DeFi tokens, token launchpad companies, and Galaxy Digital stock are likely to benefit from the ongoing trends [4]. Group 3: Market Performance - As of the latest update, Bitcoin is trading at $88,992, reflecting a 1.9% decrease in the last 24 hours [5].