Jefferies Identifies Crypto in Early Internet Phase

On September 21, Jefferies Group LLC informed institutional clients that cryptocurrencies resemble the 1996 internet era, suggesting significant growth potential, according to a CoinDesk-related report.

Jefferies advises focusing on adoption-driven analysis, as capital may shift from speculative assets to real-world applications, echoing strategies from the dot-com era’s early days.

Jefferies Sees Parallels with 1996 Internet Boom

Investment dynamics are shifting as institutional investors reevaluate their portfolios. Jefferies suggests that funds are starting to migrate towards tokens and ETFs linked to real-world applications, as detailed in the VanEck ETFs Regulations and Filings Document, rather than speculative assets. This transition indicates an increasing preference for assets integrating blockchain technology within broader business frameworks. Clients are encouraged to scrutinize growth potential and sustainability when selecting investments.

Andrew Moss, Head of Digital Assets Research, Jefferies Group LLC, stated, “The cryptocurrency industry is still in its ‘1996 internet phase,’ implying substantial growth potential ahead as technological infrastructure and real-world adoption mature.”

New guidance from Jefferies is generating dialogue among industry leaders about the future trajectory of crypto investments. Public commentary from prominent figures is limited, though Arthur Hayes and Raoul Pal have independently highlighted adoption and utility, aligning with Jefferies’ perspective. These discussions forecast a growing emphasis on long-term utility in cryptocurrency investments.

Bitcoin’s Market Dominance and Investor Focus on Utility

Did you know? During the early internet era of the 1990s, significant divergence among tech companies led to extraordinary growth for selective investors. Jefferies sees a similar bifurcation ahead in crypto.

Based on CoinMarketCap data, Bitcoin (BTC) trades at $115,801.85, with a market cap of $2.31 trillion and 57.10% market dominance as of September 21, 2025. Over the past 90 days, BTC has surged by 14.26%, underscoring increased investor interest and volume fluctuations with a current trading volume of $22.44 billion.

Expert insights reveal a promising trajectory for tokens embodying real-world applications, consistent with historical adoption patterns seen in tech markets. Analysts see potential regulatory and financial transformations catalyzing this shift. Both regulatory clarity and technological adoption are poised to influence future market developments, placing emphasis on utility over speculation.