Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) are rebounding from one of the industry’s deepest downturns, but StarkWare co-founder and Zcash creator Eli Ben-Sasson says crypto still faces an existential question.

"Worst Crypto Winter"

In a series of posts on X and a recent Privacy Podcast appearance, Ben-Sasson described the current downturn as “the worst crypto winter” he has witnessed since entering the industry in 2013.

Over the past month, BTC and ETH have eroded more than 16% amid geopolitical uncertainty and capital rotation into AI-focussed companies.

Despite improving prices and growing institutional interest, he argued that crypto remains in the middle of an identity crisis.

Ben-Sasson attributed the recent market recovery primarily to macroeconomic developments rather than industry-specific catalysts.

“Crypto will be the new rails for TradFi and financial institutions, or crypto will disrupt them and offer new financial entrepreneurship models,” Ben-Sasson wrote.

According to him, the dominant narrative since President Trump’s return to office has centered on institutional adoption and Wall Street integration.

However, he believes that focus contributed to the sector’s recent struggles.

Bitcoin, Ethereum And The Search For Utility

While Bitcoin and Ethereum have benefited from ETF adoption and institutional participation, Ben-Sasson argued that the next major crypto cycle will be driven by applications that deliver capabilities unavailable in traditional finance.

He said the industry has lost sight of its founding purpose, creating systems that enable financial freedom, innovation and permissionless access.

“The world is waiting for new things that are about financial freedom, about doing things that only blockchain can deliver and which TradFi, with its regulatory moats and massive barriers, will never allow,” he wrote.

That view aligns with comments Ben-Sasson made during the Privacy Podcast, where he argued that blockchain’s long-term value lies not in creating a new asset class but in changing how people transact, store value and control their digital identities.

Privacy Narrative Returns

Ben-Sasson also highlighted rising interest in privacy-focused technologies and cryptocurrencies, including Zcash, which he co-founded.

During the interview, he argued that privacy remains one of blockchain’s most underappreciated features and will become increasingly important as businesses move financial activity on chain.

"If businesses and companies and people all over the world are going to transact on-chain, privacy is a must," he said.

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