Record blockchain valuations are unjustified
According to Yuval Rooz, co-founder of the blockchain platform Canton, many smart contract blockchains are struggling to justify their record-high market valuations. Despite the hype around DeFi and Web3, the actual user activity on these blockchains often falls short of the levels required to sustain such high stock prices.
In an interview with CoinDesk, Rooz noted that many blockchains are mistakenly positioning themselves as the financial infrastructure of the future, but in reality, their ecosystems are far from the level of activity that could justify their market valuations. In his opinion, these blockchains are facing a "reckoning" when their market prices will come into line with their real-world usage metrics.
Additionally, Rooz expressed skepticism about certain stablecoins, which he said have yet to find a stable niche in the market and prove their viability as a means of payment.
The future belongs to practical solutions
As an expert in blockchain technology, Yuval Rooz believes that the future belongs to those cryptocurrency projects that focus on solving real user problems, rather than speculative price inflation. In his view, the blockchains and stablecoins that will succeed are those that can demonstrate their practical value and find sustainable demand in the market.