Migration of tokenization and settlement activity to permissioned private blockchains rather than public networks will structurally weaken Bitcoin through reduced liquidity, capital flows, and on-chain volume
Too little corroboration in the last 3 days to call a trend (1 article). Watching for it to gain traction.
There is a concern that the migration of tokenization and settlement activities to permissioned private blockchains could diminish Bitcoin's market position. This shift might lead to reduced liquidity, capital flows, and on-chain volume for Bitcoin, as activities move away from public networks.
A move towards private blockchains could alter the liquidity landscape, potentially decreasing Bitcoin's attractiveness as an investment and affecting its price stability, as liquidity and capital flows are crucial for maintaining robust market dynamics.
"Should that activity settle on permissioned rails rather than public chains, the crypto ecosystem could face a structural de-rating — thinner liquidity, weaker capital flows and slower on-chain volume — a drag that would reach bitcoin in time."