DeFiance Capital CEO: The crypto infrastructure speculation bubble has burst, and application valuations are more attractive

Odaily News Arthur Cheong, founder and CEO of DeFiance Capital, said that the impact of the "Fat Protocol Thesis" in the crypto market is fading and the speculative bubble of infrastructure projects has burst.
He pointed out that the price-to-earnings (PE) ratios of DeFi applications are typically 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 seen limited growth in the past two years and their valuations are still in the 150x-1000x price/revenue ratio range.
Cheong believes that as the market reassesses valuations, DeFi and other application-based projects will receive more attention, while the premium for infrastructure projects is being digested by the market.