Podcast: Hear Truvius on CoinDesk’s Markets Daily Podcast

Mar 1, 2024

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:

Crypto markets have given a new meaning to the term “Leap Year” with digital asset markets jumping substantially in February and many assets approaching all-time highs.

Following a choppy January on the heels of the Bitcoin spot ETF approval by the SEC, crypto assets spanning all sectors and market cap sizes have gained meaningfully over the trailing month. Bellwether megacap assets Bitcoin and Ethereum are both up approximately 40% on the year, meaningfully outperforming traditional asset classes like stocks, bonds, and commodities both outright and on a risk-adjusted basis.

From a sector perspective, assets in the Information Technology and Utilities sectors, including Fetch.ai (which more than doubled in price over the month) and Render (up nearly 80% over the month), have seen particularly outsized gains. These sectors tend to exhibit meaningful beta to AI and distributed computing power – two markets with strong current traction in traditional asset markets as well.

The Media and Metaverse crypto sector also saw strong performance over the trailing month, with gaming-focused networks like Immutable rallying more than 60%.

In addition to the intersection of crypto and AI, gaming has seen a rise in both consumer and investor interest. Australia-based Immutable is a key example of an Ethereum-powered application that enables software developers to easily build and host “Web3” games (internet gaming akin to e-sports). Immutable and gaming-focused institutional investors expect that the next significant wave of blockchain adopters will enter through Web3 gaming vs. other potential use-cases like DeFi, particularly in APAC markets like Japan and Korea where NFT markets and in-game player economies have found stronger product-market fit.

From a fundamentals perspective, price momentum has been a driving factor behind recent performance. Assets with stronger price momentum have outperformed assets with weaker price momentum. Conversely, signals that assess the fundamental value of various networks and protocols—including measures focused on protocol revenue, network user adoption, and long-term holder trends—have generally underperformed price momentum signals, suggesting a more “growth”-driven environment and less a “value”-driven one.