Solana Co-Founder, Anatoly Yakovenko, Says the Crypto Winter Could Last Another 12 to 18 Months, due to the hike of Fed rates.
In the latest episode of Decrypt’s GM podcast, Yakovenko predicted continued market pain for some time to come due to the ongoing rate hikes by the US Federal Reserve.
He also expressed optimism about an eventual return to growth in the crypto markets to co-hosts Dan Roberts and Stacy Elliott.
Fed Rates Will Prolong Crypto Winter
Yakovenko said, “Looking at macro stuff, my guess is there’s probably 12 to 18 months more of this brutal Fed rates going up.”
“But there is an end to it. And just like the last bear market, a lot of teams that built and focused on product-market fit, and really tried to build amazing products—a lot of those succeeded, I think, in a very dramatic way,” he added.
As per CoinGecko data, SOL’s price has declined 81% since the start of 2022, extending the decline in crypto markets.
There have also been three significant outages in layer-1 this year, including one last week, which Yakovenko mentioned in the episode.
In spite of the macro decline and technical difficulties, Solana has also seen growth and continued momentum.
Despite the lower price of SOL and declining value of some collectibles, Solana’s network continues to grow.
Also, Yakovenko noted that Solana startup valuations are still “pretty high valuation” despite the crypto winter.
This Year Breakpoint
He made the comments ahead of Solana’s annual Breakpoint conference in Lisbon, Portugal in early November.
Some consider Breakpoint to be a fixture on the Web3 conference circuit after it debuted last year.
Yakovenko believes that the event offers an opportunity to evaluate everything that has transpired over the last year within the Solana ecosystem.
“We call it Breakpoint because it’s kind of a break. But I think that’s important—to take a break and then look back at what we accomplished, what the challenges were over the last year, and really re-energize everyone to continue building,” he said.
He was asked if this year’s Breakpoint will feel different from last year’s debut, during which SOL’s price was soaring.
“Are people going to be depressed and somber? I don’t know, honestly,” he replied.