Dragonfly Partner: Market Sentiment Far from FTX Collapse Levels, Crypto Fundamentals Remain Solid

Odaily News Dragonfly Managing Partner Haseeb wrote on the X platform that while several industry insiders recently believe current market sentiment is worse than during the FTX collapse, he explicitly refutes this, calling it a classic case of "recency bias." The FTX collapse was the industry's most severe systemic crisis since Mt.Gox, with the market even fearing a functional ban on the crypto industry globally, leading to high uncertainty about its future. In contrast, although prices have declined since October last year, the industry's fundamentals remain healthy. This includes continuously improving global regulatory prospects, ongoing progress in institutional and corporate adoption, active prediction markets, perpetual DEX trading volumes hitting record highs, and stablecoin adoption entering a phase of rapid growth. Overall, industry recovery still requires time, but the overall development prospects remain positive.

(Note: Recency bias refers to the psychological effect where the most recent stimulus influences impression formation.)