Crypto Investing Shifts Toward Fundamental Tokens
DeFiLlama researcher Kyle says crypto investing may be moving away from short-term narratives and toward tokens backed by real revenue, product growth and stronger tokenholder rights. He argues that crypto investing has been weakened by high fully diluted valuations, repeated token unlocks, poor disclosure, weak profitability and token designs that favour company shareholders over holders.
Kyle recommends longer investment horizons, greater tolerance for volatility and a focus on product-market fit, recurring revenue, sustainable growth, transparent reporting, controlled token supply and credible value capture. He describes this trend as the development of an “internet capital market” connecting traditional finance with internet-native assets.
Ethena’s ENA is cited as an improving tokenomics example. Its revenue-funded buybacks, governance structure, stronger tokenholder alignment and cancellation of monthly investor unlocks have supported the project’s investment case. ENA reportedly gained 95% in 14 days, although the performance is not a guarantee of future returns.
The sectors highlighted are AI inference, tokenised equities and real-world assets, discounted digital-asset treasury companies, stablecoins, privacy and perpetual futures decentralised exchanges. Kyle’s preferred assets include VVV and ORBIO, with NEAR and CHIP as alternatives; BP; USDE; ZEC; and HYPE and LIT. He also views HYPE as an early candidate for long-term dollar-cost averaging.
Kyle warns that AI-assisted development is making low-cap tokens easier to copy. Team execution, transparency and sustainable revenue may therefore matter more than polished websites or short-lived narratives. The thesis is constructive over the long term, but it is an analyst’s opinion rather than a direct market catalyst. Traders should expect volatility and treat the framework as a screening approach, not a short-term buy signal.
Neutral
The immediate price impact is likely neutral because the article presents Kyle’s framework and preferred sectors rather than a new protocol launch, regulatory decision or material change in market liquidity. ENA’s reported 95% gain over 14 days may attract momentum traders, while the buyback and unlock changes could support ENA’s longer-term valuation. However, that move may already reflect the news, and the article does not establish a direct causal link.
In the short term, traders may rotate toward ENA, HYPE, LIT, VVV, ORBIO, ZEC, BP and USDE, particularly if broader market sentiment favours fundamentals, yield or real-world-asset narratives. The warning about easily copied low-cap tokens could also reduce appetite for speculative assets. Volatility remains high, and profit-taking after sharp gains could limit follow-through.
Over the longer term, recurring revenue, sustainable token supply, transparent disclosures and value capture could improve confidence in the highlighted projects. The framework may support gradual accumulation of stronger assets, especially HYPE and ENA, but it is not a guaranteed catalyst. Macro conditions, execution risk, liquidity and token unlocks remain more important market indicators. Therefore, the overall effect on the mentioned cryptocurrencies is best classified as neutral, with selective long-term bullish implications rather than an immediate market-wide price signal.