Co-founder of “Ethereum killer” Tezos Kathleen Breitman predicts that the current bear market cycle in cryptocurrencies will only worsen.

Breitman explains that cheap money “inflated” the most recent bull run. She claimed that “a lot of easy money was pouring into the system.” The co-founder of Tezos thinks that the value of cryptocurrency enterprises has increased. She cited the outrageous $13.3 billion valuation of OpenSea, the largest NFT platform, despite the fact that its sales volume decreased compared to 2021. “A lot of inexpensive money was invested. Valuations skyrocketed, according to Breitman.

Numerous cryptocurrency companies began to struggle as a result of falling cryptocurrency prices after the U.S. Federal Reserve scaled back its pandemic-era support. Over 70% of the recent peaks have been lost by large corporations like Bitcoin (BTC), Ethereum (ETH), and others. The Fed, which is steadfastly working to limit inflation, is on track to announce another sizable rate hike later today. To what quality? Breitman thinks that now that cheap interest rates are history, only things that are truly useful will “thrive” in the future. Only a “small proportion” of cryptocurrencies, according to her, exist.

The co-founder of Tezos has repeated Ripple CTO Brad Garlinghouse, who once asserted that there isn’t really a need for 3,000 projects in the world.