Alexander Lorenzo and a co-host argue crypto hasn't entered its power cycle yet because total value locked is still below 2021 levels and should triple. They credit the Clarity Act, which classifies tokens as securities or commodities and allows $75M fundraising without full SEC registration, as the catalyst that could trigger the next major cycle.
A lot of people have heard of the absurd gains in cryptocurrency through something called the altcoin cycle. But there's another category called the power cycle. So the power cycle is when you see things like this consistently, like crazy amounts of returns. Usually happens towards the end of the altcoin cycle, kind of like a last hurrah for altcoins. So what I'm going to do in this video is I'm going to show you evidence, number one, that we have not experienced a power cycle, and number two, that this is very consistent and this is the opportunity where most of the 100x's are birthed. The first reason why I believe that we have not experienced a power cycle is because of TVL. As you can see, we haven't even reached all-time high for TVL. And we should 3x this number. This was in 2021. TVL, by the way, is total value locked. It's all the money that's in the cryptocurrency ecosystem. So as you can see right here, we haven't even reached all-time high. And I'm making the claim that we should do about 3 times this. Altcoins always increase in liquidity, not decrease.
The trend is up.
Now, the power cycle is real because it happens consistently throughout time. As you can see right here, this was 2017 and this was the greatest one. They called this the ICO bubble, initial coin offering. This is when coins first came out. But we didn't really have an ecosystem. They were all launched by themselves in a closed vacuum with a centralized product, and then basically it started getting more decentralized. Hence 2021. Let me show you. This right here is February 2021. Same type of crazy numbers, but now there's more decentralization. There's more money in the actual protocols and the blockchains themselves, and the trend will continue. We're currently experiencing right now is a cycle of traditional finance coming into crypto.
It is very clear. We're having legitimate laws being passed, and one of the most important ones that I believe will start the power cycle is the Clarity Act. It passed the U.S. House on July 17th, but it's not officially law. This aims to provide clear legal definitions and regulatory boundaries because it's easy to launch a coin right now. The problem is we don't know if I launch a coin if I'm going to get sued and what's the exact clarifications. We never had those clarifications before. Look at what I'm saying right now. Please hear me out. The Clarity Act that will be passed likely by the end of the year. Is going to put every coin that's launched into 2 categories. Number one, it's a security. That security will be handled by the Security Exchange Commission. Or number 2, it's a digital commodity, which will be handled by CFTC, and they will regulate it. Essentially, you'll know what to do now. Before, this was not a reality. I'm gonna keep saying it like I've always said it. You are legally, if this passes, allowed to fundraise up to $75 million in a 12-month period without triggering a full Security Exchange Commission registration. Before, you would have to spend 10 grand on a lawyer. You would have to write up a whole plan and spend like 6 months creating some type of project for the Security Exchange Commission to launch a business. Now, you can launch any business with a token attached and fundraise up to $75 million in 12 months without going to the Security Exchange Commission at all. There will be no reason for any company in the United States to launch a security anymore. There's no benefit to launching the security versus launching a coin. This gives crypto an absurd Strategic advantage in regulatory environment.
The most significant altcoin regulation is about to be passed and our TVL is below all-time high. It's coming.
