Charles Hoskinson, CEO and founder of Input Output, explains crypto prices may need another three to six months of pressure before catching up with the industry’s technological progress. However, he remains bullish on the long-term outlook, arguing that the next major cycle will be driven by real-world assets, Web 2.5 infrastructure, regulation and billions of new users.
Why Prices Are Still Lagging
Hoskinson said current market conditions resemble the later stages of a bear market. The Crypto Fear and Greed Index is around 24, while Bitcoin ETFs have recorded roughly $4.5 billion in net outflows despite holding around $80 billion in assets under management.
“It’s actually a great buying opportunity right now,” he said, pointing out that crypto has already survived wars, geopolitical shocks and major regulatory events.
Still, Hoskinson believes the next recovery cannot depend on the old crypto narrative of simply building faster blockchains. Instead, he sees the industry moving toward a broader Web 2.5 model.
The Next Growth Wave
Hoskinson pointed to Canton, Ripple, Circle, Tether and Binance as examples of regulated companies connecting traditional businesses with blockchain technology. Having said that, this model could unlock the next major wave of adoption as real-world assets move on-chain.
Over the next three to five years, more than $10 trillion in RWAs could enter the ecosystem and potentially bring 1 to 2 billion new users.
“No one gives a crap about that,” Hoskinson said about focusing only on throughput and finality, arguing that future infrastructure must also solve compliance, legal contracts, jurisdictional changes, upgrades and consumer safety.
Scenario 1: CLARITY Act Passes
That transition could receive a major boost from regulation.
“The big thing is going to be whether clarity passes or not,” Hoskinson said.
If the CLARITY Act passes, he expects capital inflows and a sharp market rally. However, he warned that the initial move may not last.
“It’s like adding a bunch of sugar to young kids,” he said, suggesting the market could surge before experiencing a “dead cat bounce.”
Scenario 2: Recovery Meets New Risks
Crypto has fallen roughly 50% from its $4.4 trillion peak to around $2.2 trillion. Hoskinson said the potential for $10 trillion or more in future capital leaves room for a major recovery.
“There’s no way for this not to not only return to an all-time high but for the markets as a whole to improve,” he said.
However, the biggest short-term risk could come from AI. A major AI bubble burst could trigger a deep recession and hurt crypto, while continued AI growth could help digital assets gradually decouple from technology stocks over the next 24 to 36 months.
The Real Competition
Hoskinson further added that the real competition is no longer simply Ethereum vs Solana or Cardano vs another blockchain. Google, JPMorgan and other major institutions are entering quietly.
The challenge, according to him, is whether crypto can grow while preserving its principles instead of simply becoming another version of Wall Street.
Overall, Hoskinson remains positive but expects the next six to 12 months to remain difficult. He firmly thinks that the next major crypto cycle will ultimately be powered by regulation, RWAs, billions of new users and infrastructure connecting traditional finance with decentralized technology.
Source: Original Article
