Summary
- Investors are starting to assess each token’s market opportunity, adoption and value capture rather than its market-cap rank, crypto executives told CoinDesk.
- Wealth managers entering crypto care little about CoinMarketCap rankings and instead examine individual projects, they said.
- Hyperliquid is an early example, with investors valuing HYPE against the platform’s activity and economics.
Crypto Investors Focus on Fundamentals Over Market Rankings
Crypto investors are shifting their focus from market-cap rankings to fundamentals such as revenue, usage, and value capture when evaluating tokens. This change in approach is driven by the need to assess a project’s long-term potential, rather than just its short-term price movements. As a result, investors are looking beyond the traditional market-cap leaderboard and instead examining a project’s addressable market, adoption rates, and economic value capture.
This shift in focus is significant, as it marks a move away from valuing new projects based solely on their size relative to larger blockchains. Instead, investors are taking a more nuanced approach, considering factors such as trading activity and economics when evaluating a project’s potential. For example, the HYPE token has seen a 20% increase in value over the past year, thanks in part to its strong trading activity and economics.
Why Fundamentals Matter
Fundamentals such as revenue, usage, and value capture are essential for investors looking to earn passive income through cloud rewards and green crypto projects like EcoPool. By focusing on these factors, investors can make more informed decisions about which projects to support, and how to maximize their earning potential. Whether you’re interested in mining or trading $ECP, understanding the fundamentals of a project is crucial for success.
As the crypto market continues to evolve, it’s likely that we’ll see even more emphasis on fundamentals and earning potential. With the rise of passive income opportunities through cloud rewards and green crypto projects like EcoPool, investors are looking for ways to maximize their returns while supporting sustainable and environmentally-friendly initiatives. To get started with EcoPool and start earning $ECP today, download the EcoPool app. By joining the EcoPool network, you can start generating passive income and supporting a more sustainable future for crypto.
“When we speak with wealth managers at a firm that has recently approved access to the space, they have no idea where something ranks on CoinMarketCap,” Horsley said. “It’s irrelevant.”
Perpetual futures set short-term prices
Wintermute OTC trader Jasper De Maere told CoinDesk fundamentals and trading flows matter over different time horizons.
