Tradecraft August Newsletter

Fundamental Indicators

Market Summary

Decentralized Finance (DeFi) Continues to See High Growth

In Closing

Crypto assets are proving their worth as an alternative asset class. As global central banks continue to provide stimulus and as the world becomes a more chaotic place, bitcoin is rising in value and taking the entire crypto complex with it. Ether is the best performing crypto asset between the reserve assets, bitcoin and ether. Much of rise in crypto asset prices revolved around DeFi with those specific protocol tokens rising the most early on. We are also seeing a new investment theme arising — one that will play out big in 2021. That investment theme is digital scarcity. We’re seeing NFTs (non-fungible tokens) that represent digital items for games, art, collectibles and virtual worlds being auctioned off for big money. The NFT space has drawn in $100m of investment to date. That’s a big deal. I think it will outperform bitcoin in the medium-term. As we continue into this bull market run other crypto asset classes like the Platforms will start to outperform bitcoin as well. The main investment themes to watch are autonomy, DeFi and digital scarcity.

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Jake Ryan

Jake Ryan

CIO at Tradecraft Capital & Author of Crypto Asset Investing in the Age of Autonomy, published by Wiley