Crypto Market's 'One-Shot Profit' Narrative Remains Strong Despite Institutional Gains

Crypto investors' attention remains fixated on 'one-shot profit' narratives rather than fundamental analysis, despite the market's growth into an ecosystem with institutional investors and real-world use cases.

This pattern repeats in every cycle, including DeFi, memecoins, and decentralized computing, according to a report by Cointelegraph. Samar Sen, head of international markets at U.S. fintech firm Talos, attributes the phenomenon to crypto's status as a young asset class, where price discovery is influenced more by attention than analysis.

Meir Statman, a professor at Santa Clara University and behavioural finance scholar, points out that investor psychology plays a significant role in this pattern. He explains that investors tend to bet on outcomes that can change their lives rather than choosing the optimal assets, citing human nature and aspirations as key factors.

Institutional investors, however, are moving on different criteria from retail investors, reviewing risk-adjusted performance, liquidity, custody systems, and operational resilience before upside potential. Thomas Probst, a research analyst at Kaiko, stresses that fundamentals matter more in the long term, emphasizing the importance of resilience, liquidity, and volatility.