Mark Cuban sees commercial smart contract implementation as the next stimulus for the crypto and blockchain industries.
Mark Cuban stated that “when businesses can use smart contracts to gain a competitive advantage, they will. The chains that realize this will survive.”
The owner of the Dallas Mavericks and a known crypto supporter was comparing the existing situation of the cryptocurrency market to the fall of many enterprises that were part of the dot com bubble in the early 2000s, with the excessive excitement around them being just as comparable as enterprises in the market currently.
Almost all of the list of 100 most prominent crypto assets have lost double digits in the last week, indicating that the cryptocurrency market is in bad shape. Numerous causes, including the Federal Reserve’s latest policy changes, are assumed to be driving the bearish attitudes in the market. Nevertheless, early on Tuesday on Twitter, Cuban mentioned a present “imitation phase” in crypto/blockchain, rather than actual progress, saying that “crypto is going through the lull that the internet went through.”
Crypto is going through the lull that the internet went through. After the initial surge of exciting apps, NFTs, DeFi, P2E, we saw the imitation phase as chains subsidized the movement of those apps to their chains (ala bandwidth and storage subsidies by startups in the 2000s)
— Mark Cuban (@mcuban) May 9, 2022
According to Mark Cuban, the blockchain ventures that merely “copy what everyone else has” by crossing across NFTs to DeFi protocols, will ultimately fade out because not every chain needs them.
Rather, Cuban believes that smart contract platforms aimed at substituting software as a service (SAAS) apps would thrive in the future: “what we have not seen is the use of Smart Contracts to improve business productivity and profitability. That will have to be the next driver. When businesses can use Smart Contracts to gain a competitive advantage, they will. The chains that realize this will survive.”
The year before saw the major players choose Ethereum (ETH), Solana (SOL), Polkadot (DOT), and Cardano (ADA) as their smart contract platforms of preference, according to CoinShares’ cryptocurrency funds report for the entire year 2021.
As per the research, funds providing exposure to Ethereum (ETH) were the clear winners, bringing in $1.38 billion. $219 million were brought in by the funds of Solana (SOL), followed by Polkadot (DOT) funds that brought in $116 million, and lastly, $115 million were brought in by Cardano (ADA) funds.