DeFiance Capital CEO： The foam of encryption infrastructure speculation has broken, and application valuation is more attractive

Odaily Planet Daily News Arthur Cheong, founder and CEO of DeFiance Capital, said that the impact of "Fat Protocol Thesis" on the encryption market was fading, and the speculative foam of infrastructure projects had burst. He pointed out that the price to earnings ratio (PE) 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 had limited growth in the past two years, with valuations still in the price/revenue ratio range of 150x-1000x. Cheong believes that as the market re evaluates valuations, DeFi and other application-oriented projects will receive more attention, while the premium of infrastructure projects is being digested by the market.