Cryptocurrencies are not in "dotcom bubble territory" in terms of market capitalization, a venture capitalist said at the World Economic Forum (WEF) on Thursday.

During a CNBC panel at The Sanctuary in Davos, Switzerland, Richard Muirhead, a general partner at Fabric Ventures, Ethereum co-founder Joe Lubin and Blockchain co-founder Nic Cary discussed the future of cryptocurrencies.

Many digital coins saw huge price rises in 2017, with some business leaders calling the space a bubble.

Market capitalization refers to the value of all cryptocurrencies in existence. This currently stands at about $544 billion, according to data from Coinmarketcap.com, a website that tracks cryptocurrency prices.

Muirhead said that during the famous dotcom bubble, where the stock price of internet firms soared, the market cap of companies was "several trillions." In comparison, cryptocurrencies are just over a half a trillion.

"The prices might have become a little bit more speculative than perhaps they could be, but you know we see an increasing number of high quality teams coming along and... building interesting applications. And I think it does take time... we have to be patient," he said.