According to Odaily, Arthur Cheong, the founder and CEO of DeFiance Capital, has suggested that the market may shift its favor towards crypto projects that have demonstrated their product-market fit (PMF) and resilience across multiple market cycles. These projects could potentially be re-rated to higher market values. On the other hand, projects with low circulation, high fully diluted valuation (FDV), and continuous hype may yield minimal results.
Some of these companies are valued cheaply and have even become more dominant over the past few years. Ultimately, their price-to-earnings ratio will no longer be less than 20 times. This shift in market preference could significantly impact the valuation and success of various crypto projects. It emphasizes the importance of proven product-market fit and resilience in the volatile and competitive crypto market.
Cheong's insights provide a fresh perspective on the potential future of the crypto market. It suggests that investors and market participants may start to prioritize projects with proven track records and robust fundamentals over those that rely heavily on hype and speculation. This could lead to a more stable and mature crypto market in the long run.