EasyA co-founder Guo Daming said that cryptocurrency prices reflect future hopes rather than current

EasyA co-founder Dom Kwok: Crypto prices reflect future expectations rather than current utility

EasyA co-founder Dom Kwok gave an in-depth analysis of why cryptocurrency prices may still fall even as the industry announces partnerships and achieves development milestones. He pointed out that the disconnect between investor expectations and blockchain technology's actual capabilities in the real world is a core driver of continued price volatility.

Market speculation and reality gap

Kwok said on X (formerly Twitter) that the crypto market does not evaluate the value of assets primarily based on their current usefulness or popularity. Instead, he observed that trading activity reflected investors 'expectations for blockchain's future achievements, rather than the actual results it could currently provide.

In his article, Kwok explained that this dynamic often causes prices to continue to fall despite good news. Investors tend to factor in potential future achievements, creating a gap between valuations and actual results.

"Why are prices still falling despite so much good news?" Dom Kwok wrote. He believes that the trading basis of cryptocurrency is not current technology, but the goals the market hopes it can achieve in the future.

Kwok pointed out that the market's excessive focus on future possibilities and ignore current realities is a key reason for short-term price volatility and unpredictability, even if blockchain projects receive new contracts or launch technological advances.

Analogy of the Internet Bubble

为了强调这一观点，Kwok将当前的加密市场环境与1990年代末期的互联网泡沫时期进行了比较。当时，互联网公司的估值极高，但其商业模式尚未完全验证或实现盈利。

随着投资者情绪的转变，许多知名股票经历了严重下跌。例如，亚马逊股价跌幅超过90%，英伟达下跌约85%。尽管遭受这些损失，但随着互联网成为日常生活不可或缺的一部分，这两家公司最终实现了长期复苏。

Kwok指出，互联网泡沫的破裂并未阻碍技术进步。相反，那些构建了持久用户价值的公司最终取得了持久的成功。

他以亚马逊成长为万亿美元市值公司为例，说明现实应用和大规模普及往往紧随投机与失望期之后到来。

由Kok共同创立的EasyA致力于帮助区块链开发者构建新应用，促进新兴数字平台的实用案例落地。

名词解释：EasyA is a technology company that provides resources and community-driven initiatives to support developers building blockchain-based applications.

Blockchain, expectation and popularity

Kowk believes that cryptocurrencies are at a moment similar to the early Internet era. Investors are betting on the future utility of decentralized networks, but widespread real-world use remains limited.

He noted that market optimism about blockchain is often factored into price before it actually unifies, which may explain why continued good news does not always lead to higher valuations.

Kwok predicts that cryptocurrencies will experience transformative growth only when users begin to seamlessly integrate blockchain technology into their daily routines and are not necessarily aware of the underlying infrastructure.

He cited the S-curve model of technology adoption, explaining that blockchain may follow a trajectory where growth will accelerate as technology transitions from early adopters to mainstream users.

Noun explanation: S-curve is a concept in innovation diffusion, explaining how new technologies can quickly accelerate their adoption after a slow start, and then gradually stabilize when the market matures. process.

XRP Holders and Future Prospects

Kwok's analysis provides a perspective for XRP investors and the broader crypto community. He suggested that positive industry news signals progress in blockchain development, but does not guarantee an immediate price increase or a significant increase in user size.

He further stated that not every cryptocurrency project will achieve widespread adoption, as long-term feasibility depends on attracting users and providing tangible benefits.

Looking to the future, Kwok believes blockchain will eventually play a key role in the global financial system. For XRP holders, he emphasized that real-world adoption is more important than speculation in driving lasting market value.

Until blockchain platforms gain widespread, daily use, cryptocurrency prices may continue to experience fluctuations as the market weighs future potential with current penetration.