DeFiance Capital CEO: The crypto infrastructure speculation bubble has burst, and application valuations are more attractive

CoinRank News: Arthur Cheong, founder and CEO of DeFiance Capital, said that the impact of the Fat Protocol Thesis in the crypto market is fading and the speculative bubble of infrastructure projects has burst. He pointed out that the price-to-earnings (PE) ratio of DeFi applications is usually between 5-15 times, such as Hyperliquid (7.7x), Ena (7.4x) and Jupiter (3.9x), while infrastructure projects such as Ethereum (694x) and Solana (162x) have seen limited growth in the past two years and valuations are still in the 150x-1000x price/revenue ratio range. Cheong believes that as the market re-evaluates valuations, DeFi and other application-based projects will receive more attention, and the premium of infrastructure projects is being digested by the market.