Emin Gün Sirer, creator of the Avalanche blockchain protocol, said the recent drop in crypto prices didn’t dampen his excitement about the future of the market in general.
Speaking to Cointelegraph China, Sirer used his “unique angle” to outline some of the goings-on behind the scenes regarding the growing interest in crypto exposure by companies outside the industry.
According to Sirer, everyone from politicians to central banks to hedge funds has been asking about crypto over the past year. In fact, the influx of hedge funds and institutional money in general appeared to be catalyzing a massive parabolic advance for the crypto market that began in the fourth quarter of 2020 through the market decline in May.
Well, the Cornell University professor said hedge funds aren’t the only big money players getting into the crypto space.
“I got contacts from pension funds, not hedge funds but pension funds,” Sirer told Cointelegraph China, adding:
“A whole different piece, much slower, but with maybe 10 times more dollars under your control and you’re slowly getting into cryptocurrency.”
The Avalanche founder’s comments coincide with revelations from companies like NYDIG that said pension funds and sovereign wealth funds are the next big players to consider crypto exposure.
Despite Sirer’s long-term positive stance, the computer scientist stated that the short-term price action for crypto during the summer months could remain locked in an area-bound sideways accumulation.
“I assume that we will see markets trending sideways. This will be a summer in which price levels may remain horizontal, and may also fall a little. It can happen. But I expect a resurgence in October, November. “
Sirer also spoke about the limitations of existing blockchain protocols, such as scalability and other performance issues. As part of the interview, Sirer noted that the architecture of existing blockchain networks is not efficient enough to support all of the world’s assets.
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Trying to solve these problems led to the creation of the Avalanche blockchain, according to the professor. Sirer detailed the features of Avalanche, such as the ability to create custom blockchains called subnets, and a community-driven governance architecture as combinations that are unique to the network.
Sirer also compared Avalanche to other major blockchains in the field, adding that its protocol offers superior performance over these chains at a lower cost of ownership.