Arca CIO: Crypto investment logic is shifting towards the application layer, such as prediction markets and DEXs focused on perpetual contract trading like Hyperliquid.

Jinse Finance reported that Arca Chief Investment Officer Jeff Dorman posted on X, stating, "I need to elaborate further. This is also why almost all assets related to mainstream stablecoins, base layer blockchains, and real-world asset tokenization currently lack investment value, including various base layer blockchains and layer 2 networks such as Solana and Ethereum. Everyone wants to build their own blockchain, and no one is willing to invest in others' blockchains, or even use others' products. Although the stablecoin/payment sector and the real-world asset tokenization field have attracted extremely high market attention and rapid development, the value created by this growth has not been deposited into any existing infrastructure. New entrants want to control the entire tech stack, rather than simply using the existing one. However, this does not mean that there are no investment opportunities in the crypto sector; rather, exchanges, index institutions, and industry opinion leaders are leading your investment direction astray. Stop investing in infrastructure assets that are either being abandoned by the market or cannot generate any value from actual usage. Instead, focus on application-layer projects. Some applications built on blockchain infrastructure have already achieved successful implementation, and value is now being deposited in these application-layer projects. The 'fat protocol' theory is outdated; 'fat applications' are where the value lies. These application-layer projects include but are not limited to: prediction markets, perpetual contracts and spot decentralized exchanges (such as Hyperliquid, Aero, etc.—the specific value still needs to be judged based on the token economic model), token issuance platforms (such as PUMP), lending platforms (such as SYRUP, AAVE), and a few decentralized physical infrastructure network projects (personally, I am not optimistic about these, but there may be potential for development in the long term). The cryptocurrency industry has not disappeared; on the contrary, it is ushering in a full-scale melee among new entrants: existing players lack competitive barriers, and the entry threshold for newcomers is also relatively low."