Ep. 665 : Evolving Investing Strategies for Bitcoin & Altcoins with Blockworks

Summary

Episode Summary: CRYPTO 101 – Ep. 665: Evolving Investing Strategies for Bitcoin & Altcoins with Blockworks

Release Date: July 15, 2025

In this enlightening episode of CRYPTO 101, hosts Bryce Paul and Brendan Viehman engage in a comprehensive discussion with Ryan Connor, the Head of Research at Blockworks. The conversation delves deep into the evolving landscape of cryptocurrency investments, exploring the foundational elements that drive Bitcoin and various altcoins, the emergence of new investment strategies, and the transition from traditional metrics to more sophisticated revenue-based evaluations in the crypto space.

1. Introduction to the Episode

The episode kicks off with an introduction by Bryce Brennan, emphasizing the importance of secure mobile services in the crypto realm, highlighting a partnership with Afani to protect against SIM swap attacks. This segment, spanning from [00:00] to [01:24], underscores the podcast's commitment to safeguarding its listeners' digital assets.

2. Welcoming Ryan Connor and Setting the Stage

At [01:24], host Brendan introduces Ryan Connor, expressing excitement about Ryan's insights into the crypto market. Ryan shares his journey from traditional finance to the crypto world, detailing his transition in [02:52]:

Ryan Connor [02:52]: "By 2021, 2022, I grew really obsessed with the space... learned about Compound and thought, 'Wow, these things actually do things.'"

Ryan's experience underscores the untapped potential and "alpha" opportunities within the crypto sector that traditional finance often overlooks.

3. Investment Case for Bitcoin

Brendan steers the conversation towards Bitcoin's role in crypto portfolios:

Ryan Connor [07:48]: "Bitcoin is the benchmark asset for the asset class... it's the only asset open to tradfi in any amount of size to get exposure to the crypto story."

Ryan elucidates that Bitcoin offers beta exposure to the burgeoning crypto asset class, serving as a gateway for traditional money managers looking to integrate crypto into their portfolios, akin to investing in large technology stocks.

4. Generating Alpha Beyond Bitcoin

The discussion pivots to generating alpha—outperforming Bitcoin's returns:

Ryan Connor [09:54]: "Our subs are looking to generate alpha by going out on the risk spectrum and timing and buying things with strong fundamentals that they think will outperform Bitcoin."

Institutional investors, particularly venture capital funds and crypto-focused fund managers, seek opportunities beyond Bitcoin, targeting projects with sustainable economic models such as DeFi, perpetual futures, decentralized exchanges (Dex), consumer applications, and Decentralized Physical Infrastructure Networks (Depin).

5. Bullish Sectors: Consumer Crypto and Depin

Ryan highlights two sectors he is particularly optimistic about:

Ryan Connor [12:05]: "We're most bullish on consumer crypto and Depin... consumer applications issuing new assets and Depin projects inverting cost structures of capital-intensive businesses."

Consumer Crypto is thriving with platforms like Pump Fund, which have seen massive user engagement and revenue generation by issuing novel assets tailored for consumer interactions. Depin projects, on the other hand, revolutionize traditional industries by reducing operational costs, making them attractive to both crypto enthusiasts and traditional investors.

6. Net New Asset Issuance and Its Impact

A significant portion of the conversation revolves around Net New Asset Issuance, a concept Ryan and his team have been exploring:

Ryan Connor [15:19]: "Net new asset issuance refers to trading new, weird, interesting assets that are fundamentally different from traditional financial instruments."

Platforms like Pump Fund and the upcoming Believe app exemplify this trend by enabling the creation and trading of arbitrary assets, fostering innovation, and democratizing investment opportunities. Pump Fund, despite criticisms, has achieved over $700 million in revenue, showcasing the immense popularity and potential of such platforms.

7. Transition from ICO Mania to Curated Asset Platforms

Brendan draws parallels between the ICO bubble of 2017 and the current trajectory of platforms like Believe:

Ryan Connor [21:06]: "Believe adds a curation layer to asset issuance, vetting teams to ensure some product value, contrasting with the unvetted ICO boom."

This curated approach aims to mitigate the risks associated with unvetted token launches, attracting more discerning investors and fostering sustainable project growth.

8. The Shifting Focus to Revenue-Based Evaluation

Ryan emphasizes a paradigm shift in evaluating crypto projects:

Ryan Connor [31:51]: "Crypto has moved from being TVL-centric to revenue-centric, akin to traditional financial metrics."

Metrics like Revenue (REV) from Layer 1 (L1) blockchains, which encompass fees from block space demand, highlight the economic viability and earning potential of crypto protocols. Institutional investors are increasingly valuing these real cash flows, paralleling traditional stock market evaluations.

9. Regulatory Implications and Market Evolution

The conversation touches upon the evolving regulatory landscape:

Ryan Connor [38:41]: "Investors will reward tokens with real value capture capabilities and ignore those without, creating a self-fulfilling cycle."

Regulatory clarity is steering the market towards projects that demonstrate tangible value and revenue generation, sidelining meme coins and unproven tokens. This shift ensures a more stable and sustainable growth trajectory for the crypto industry.

10. Research Resources and Staying Informed

For listeners keen on delving deeper, Ryan points to Blockworks' research channels:

Ryan Connor [39:52]: "Follow us on X (formerly Twitter) @BlockworksRes to stay updated with our latest research and insights."

Blockworks offers a blend of free articles and open-source research, catering to both institutional clients and individual investors seeking informed perspectives on the crypto market.

11. Concluding Insights and Future Outlook

In wrapping up, Ryan shares his anticipation for how institutional investors will gravitate towards incumbent projects with proven revenue streams:

Ryan Connor [40:38]: "We're on the lookout for incumbent projects and how they're positioned to attract capital in this new regime."

This focus on established, revenue-generating projects signals a maturation of the crypto market, aligning it more closely with traditional financial paradigms and ensuring long-term sustainability.

Key Takeaways

Bitcoin as a Benchmark: Serves as the primary gateway for institutional exposure to crypto, offering beta returns.
Alpha Generation: Beyond Bitcoin, investors seek projects with robust fundamentals in sectors like DeFi, consumer crypto, and Depin.
Net New Asset Issuance: Platforms like Pump Fund and Believe are pioneering the creation and trading of novel crypto assets, fostering innovation.
Revenue-Centric Evaluation: A shift from Total Value Locked (TVL) to revenue-based metrics signifies a move towards sustainable project valuation.
Regulatory Clarity: Enhanced regulations are pushing the market towards value-driven projects, ensuring long-term growth and stability.
Research Accessibility: Blockworks provides valuable insights and research, accessible via their X handle @BlockworksRes.

Notable Quotes

Ryan Connor [07:48]: "Bitcoin is the benchmark asset for the asset class... it's the only asset open to tradfi in any amount of size to get exposure to the crypto story."
Ryan Connor [15:19]: "Net new asset issuance refers to trading new, weird, interesting assets that are fundamentally different from traditional financial instruments."
Ryan Connor [31:51]: "Crypto has moved from being TVL-centric to revenue-centric, akin to traditional financial metrics."
Ryan Connor [38:41]: "Investors will reward tokens with real value capture capabilities and ignore those without, creating a self-fulfilling cycle."

Stay Connected

To follow more of Ryan Connor's insights and Blockworks' research, subscribe to CRYPTO 101 and follow Blockworks on X (@BlockworksRes).

Note: This summary excludes advertisements, intros, outros, and non-content sections to focus solely on the informative discussion between the hosts and Ryan Connor.