Despite the broader market now coming around to crypto as a new and exciting asset class, we at Kerve Capital are quite bearish most crypto assets outside of Bitcoin. Although we expect on chain trading volumes to dramatically rise from here as more and more traditional financial assets are tokenized, we do not believe this value will accrue to traditional crypto tokens but rather to the Web2 technology companies and traditional finance services. The crypto market is broadly overvalued with most layer 1 blockchains trading at revenue multiples in the thousands.  We feel that the traditional Web2 technology and traditional finance service companies entering the space will favor their own infrastructure vs. the decentralized variety championed by crypto natives. We feel that this will result in down own price action for traditional crypto assets.

Metaplex is one of the most compelling infrastructure protocols on Solana and a high-conviction way to gain exposure to the Solana ecosystem. The protocol holds a dominant position in token creation on Solana, powering over 90% of fungible token creation and more than 99% of non-fungible token (NFT) creation.  Metaplex earns a fee every time a token is issued using its standards or platform.

CoW Protocol, a critical infrastructure provider for open finance, is re-evaluating their fee structures, business models, and tokenomics with the goal of earning a larger share of the market and increasing revenues. These changes could result in significant growth of revenue as the protocol continues to gain more of the market share across their two products: CoW Swap and MEV Blocker.