Arca CIO Jeff Dorman says the fat protocol thesis fueled a decade of mispricing: the real value is in apps, not L1s "No, I wouldn't say crypto tokens are overvalued. I would say…
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Arca CIO Jeff Dorman says the fat protocol thesis fueled a decade of mispricing: the real value is in apps, not L1s "No, I wouldn't say crypto tokens are overvalued. I would say all layer 1 smart con…
Arca CIO Jeff Dorman says the fat protocol thesis fueled a decade of mispricing: the real value is in apps, not L1s "No, I wouldn't say crypto tokens are overvalued. I would say all layer 1 smart contract platform tokens are overvalued." "There's plenty of incredibly undervalued crypto tokens at the application layer that are generating a ton of revenue and fees relative to the actual market caps." "Hyperliquid is doing $70 to $100 million per month, right? You slap a 25 times, 20 times multiple on that. Now you do have a $20 to $25 billion token." "Same with Pump[.]fun. Pump[.]fun did $50 million. You annualize that, that's $600 million." "You get a token with a $1.5 billion market cap that's doing $600 million of annualized revenue and using 50% for buybacks. You can do the same thing with Aerodrome and Sky and all these other DeFi platforms." "The reality is the fat protocol thesis, which was intellectually interesting 10 years ago by Joel Monegro and I think Chris Burniske, was so flat out wrong and has shaped 10 years of misinformation and miscalculations in this space." "The value does not accrue to the layer one protocol. It accrues to the applications built upon these protocols."
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