Mark Cuban: Adoption of commercial smart contracts is the next market driver

Billionaire investor Mark Cuban believes the adoption of business smart contracts will be the next catalyst for the cryptocurrency and blockchain industry.

Commenting on the current state of "calm" in the cryptocurrency market, the Dallas Mavericks owner and cryptocurrency proponent compared it to the dot-com or dot-com bubble of the early 2000s, when there was a lot of over-hyping and a lot of Similar companies went out of business.

The recent situation in the encryption market has been quite severe. In the past 7 days, almost all the top 100 digital assets have faced double-digit losses.

There could be several factors behind the bearish sentiment, such as the Fed's recent policy update. However, earlier today, Cuban also pointed out on Twitter that cryptocurrencies/blockchains are currently in a “copycat phase” rather than true innovation.

“Cryptocurrencies are going through a lull that the internet has gone through,” he said.

In Cuban's view, by bridging NFT to the DeFi protocol, blockchain projects that purely "copy other people's things" will eventually die out, because he believes that they are not projects that are needed on every chain.

Instead, he believes that smart contract platforms geared towards commercial use and replacing software-as-a-service (SAAS) applications will prosper in the long term:

“We haven’t seen the use of smart contracts to improve business productivity and profitability. That’s going to have to be the next driver. When businesses can use smart contracts to gain a competitive advantage, they will. The chain will survive."

In terms of recent institutional support for smart contract platforms, CoinShares' full-year 2021 cryptocurrency fund report shows that Ethereum (ETH), Solana (SOL), Polkadot (DOT) and Cardano (ADA) were heavyweight investors last year s Choice.

According to the CoinShares report, funds offering ETH exposure were the most popular, receiving a whopping $1.38 billion in inflows, followed by the Solana Fund with $219 million, the Polkadot product with $116 million, and the Cardano Fund also $115 million.

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