@OuterlandsCap shared their view on how speculation plays out in risk-on environments — and how they’re positioning accordingly

During ‘risk-on’ phases in the crypto market, it’s common to see broad-based rallies where even low-quality projects show significant price appreciation. In these environments, speculative excess can distort the distinction between fundamentally sound ventures and investments that merely benefit from hype and momentum. We’ve already seen this playing out in this month’s price action, with memecoins capturing huge gains alongside high-volatility assets and tokens in news headlines, however speculative.

At Outerlands Capital, we remain focused on using data to identify quality projects that are also good investments - capturing the long-term secular growth story of crypto’s disruption of traditional businesses and financial markets.

As such, we remain bullish on projects demonstrating consistent growth in users, on-chain activity, and fees, while also demonstrating sustainable tokenomics and thorough transparency. We continue to believe that thoughtful, diversified exposure to a broad range of crypto’s use-cases is the best way to be positioned in this nascent market.

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@jackbplatts at @hypersphere_ is bullish on ETH Beta

Traditional funds have been lining up to invest in ETH-based digital asset treasuries. Having invested in these vehicles since April, we’ve been at the front of the DAT deal flow, getting great information for how the market might shape up in the near/mid-term.

Many are starting to pitch more than just staking, some are considering finding higher yield in Ethereum DeFi. This discovery phase has the potential to direct attention to some of Ethereum’s top DeFi protocols, such as Aave, Morpho, and Pendle. I could see a future where the interest generated in these ecosystem plays — inspired by sourcing higher yield natively on Ethereum — sparks an alt season for Ethereum DeFi.

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@David_Grid who runs the @FinalityCap Liquid Opportunities fund likes ETH.

We believe Ethereum ($ETH) will continue to outperform over the next several months as it benefits from a similar tailwind that drove Bitcoin higher during the past several years - corporate treasury buying from companies like $BMNR, $SBET, $BTBT, $BTCS and others.

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This post is for informational purposes only and should not be construed as financial or investment advice.