Cumberland links the recovery of the crypto industry with the pace at which assets will move from insolvent projects to solvent ones

The rate of recovery of the crypto market is related to the pace at which assets will move from problematic projects to solvent ones. This opinion is shared by Cumberland fund analysts, who are confident that the assets of insolvent companies should be liquidated to compensate for debt obligations.

In addition, the future fate of such assets will affect the recovery of the cryptocurrency industry.

“As large and opaque off-grid liquidation streams emerge, market participants will question whether it is worth investing. This reduces liquidity and increases volatility. Uncertainty about the size and timing of the sale of assets hangs over the market like a cloud,” the company said in a Twitter post.

Interestingly, Cumberland does not consider the current situation on the crypto market to be something surprising. They opine that it is “no different from examples in financial textbooks” and that overleveraged projects have “been punished during bearish markets for hundreds of years.”

Curiously, most merchants are almost ready to accept digital assets due to the lower fees, but many find it difficult to install the right hardware. According to a joint PYMNTS and Bitpay survey of US merchants, 85% of companies with annual revenues of up to $1 billion use crypto payments to attract new customers.

More than 80% of respondents consider the absence of intermediaries a key prerequisite for accepting payments in digital currencies. According to the study, 72% of merchants are ready to accept crypto assets due to relatively low fees.

Now the commission for processing crypto transactions reaches about 1%. This is more lucrative than the fees of banks or acquirers, which, on average, take from 1.5% to 3.5% of the purchase when paying with cards.

However, some merchants believe that technical barriers still prevent crypto payments from being fully processed. Of the respondents who do not yet work with digital assets, almost 70% noted that they cannot install the necessary cash equipment.