The Liquid Token Fund managed by Pantera Capital with a size of about $300 million had a return rate of 66% in the first quarter, benefiting from the reduction of risk exposure of cryptocurrencies such as Solana, as well as Bitcoin and Ethereum-related tokens. A shareholder letter seen by Bloomberg also showed that the returns of digital assets such as RBN, Aevo, and STX contributed to the fund's performance in the first quarter.

According to a recent report by Paul Veradttakit, executive partner of Pantera Capital, a cryptocurrency hedge fund, Bitcoin ETFs will not be the only headline news in the cryptocurrency industry this year. Instead, the focus will be on the Bitcoin DeFi ecosystem, halving, and tokenization. Veradttakit stated that although the economic downturn in 2022 will have a severe impact on cryptocurrency prices similar to the bear market, this is not because cryptocurrencies are facing a survival crisis. On the contrary, the main reason for the market crash is leverage and bad actors. As the Bitcoin DeFi infrastructure matures, it is possible to see the total lock-up volume of the Bitcoin DeFi ecosystem increase from the current $300 million to 1-2% of the Bitcoin market value, which is estimated to be $10-15 billion at current prices.

The interlocking dominos seem to have fully played out. The reason to be very bullish is that the vast majority of significant events in 2023 were good news and the blockchain industry made meaningful, necessary progress.

Pantera Capital published an article on X platform stating that on the one-year anniversary of FTX's collapse, we want to take some time to reflect on how to deal with this crisis, the impact on investment portfolios, and the lessons learned for the future.