Podcast: Truvius Co-Founder Connor Farley on CoinDesk’s Markets Daily

Nov 11, 2023

Check out this week’s CoinDesk Markets Daily Podcast to hear Truvius CEO & Co-Founder Connor Farley provide market commentary on last week’s price action and insights on a multi-sector approach to the crypto economy: Listen here

Transcript of commentary:

Fundamentals-driven valuation frameworks for crypto assets are emerging both within and across different sectors of the crypto market. While the pending regulatory approval and institutional offering of vehicles for exposure to megacap assets like Bitcoin and Ethereum is an important first step toward broad-based investor adoption, the next step involves unlocking broad, diversified exposure to all sectors within the crypto economy. It is critical not to overlook the fundamental value of blockchain-powered technologies that are driving new business sectors like Decentralized Financial Services and Smart Contract Platforms, and cutting-edge investors should develop investment strategies for these sectors.

Market commentators often generalize non-mega cap crypto assets as “Alt-Coins,” primarily owing to the nascency of the asset class and the learning curve associated with its mosaic of use-cases, but this generalization overshadows the significant opportunities for data-driven relative value comparisons both within and across various sectors and assets other than Bitcoin and Ethereum.

For example, while news coverage converged on Bitcoin and Ethereum ETF speculation this week, crypto assets within the CoinDesk Computing and Smart Contract sectors including Chainlink, Cosmos, Polygon, and Solana—which all have circulating market capitalizations in the billions of dollars—meaningfully outperformed the two headlines-heavy megacaps.

From a fundamentals perspective, over the last week Polygon saw healthy network usage and stronger centralized exchange flows activity relative to peers. Solana and Link exhibited strong price momentum and were also aided by relatively stronger activity from software developers contributing to these projects over the quarter.

More of our thoughts

At Truvius, we think the most durable approach to capturing exposure to these alternative sectors is through a systematic strategy powered by fundamentals. By using a quantitative investment process that leverages on-chain and off-chain thematic signals, our investable SMA portfolios not only provide exposure to all sectors of the crypto market, but also take active overweight and underweight positions in a data-driven way. A quantitatively driven, actively managed process enables investors to obtain intelligent and diversified exposure to the entire landscape of crypto use-cases for the long-term.

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