The Crypto Trade Everyone's Making Is Wrong

I've never been more bullish on crypto.

Yet I don't own any Ethereum or Solana.

Here's why most investors who are buying ETH and SOL hoping for massive returns are likely going to find themselves to be dissapointed, and where I think investors should be looking to make the most amount in the next bull cycle.

These two particular assets made investors a fortune

These Are Winners of the Past, Not the Future

Ethereum and Solana did exceptionally well when they first launched and made investors fortunes. Many retired off these single trades alone.

If you bought Ethereum in the months after it launched and held for just two years, you would've turned a simple $10,000 investment into $10,000,000.

If you invested in Solana in its early rounds you would've turned that same $10,000 into $7,500,000 in less than a year.

The Moat is Drying

Investors now value these two networks in the hundreds of billions.

But here's the issue; the expectations they priced into these values are drying up.

Institutions AREN'T moving to Ethereum for tokenization because it's not fit for purpose.

And when it comes to Solana, I had a conversation this week with someone right in the middle of the memecoin space; he works with people who have made millions just trading memecoins.

And he told me that Solana is now just a blockchain for people to extract the last remaining pieces of value they can, primarily in the forms of speculation and memecoins.

Builders are abandoning these networks.

They did well when people were flocking in with narratives at their back, but now the tide is going back out, I don't see this shifting because new competitors are emerging that are making these networks obsolete.

Though, I Think They Go Higher

Just for now.

Sentiment is at its worst and I think crypto bounces back in a meaningful way here.

I think Ethereum and Solana move higher, and maybe even reach all time highs by this year.

The charts are starting to look constructive.

But here's the thing; that's only a double for Ethereum and less than a triple for Solana.

If that happens, the market will be pricing a $750B valuation on these networks.

In the past, the market held these valuations on a basis that institutions would be using them and they'd be the plumbing to something that matters.

But what if that doesn't happen?

What if fresh companies and blockchains are eating their lunch (which they already are)?

What then?

Do investors place a $1T price tag on these two networks?

I don't think so.

So Where's the Real Money?

Not in assets priced for a future that's quietly slipping away from them.

The biggest returns in crypto have always come from the same setup: a network solving a real problem, trading at a fraction of what it'll be worth when the rest of the market figures it out.

That's exactly what ETH and SOL were in 2016 and 2020.

It's not what they are today.

The networks I'm buying right now are where ETH and SOL were back then. They're solving the problems these two can't. Builders are actively migrating to them and institutions are really evaluating them. And the market hasn't priced any of it in yet.

I'm not interested in a 2x on a $30B network. I'm interested in the next 50x on a network or company that deserves to be worth ten times what it trades for today.

Paid subscribers, I shared a name earlier this week that meets the criteria that I think will 5x over the next year, and I'll be covering more names in detail during this week's live call.

If you're not apart of my community yet, that's where my actionable ideas live.

The last cycle made fortunes for people who ignored the consensus trade.

This one will be no different.

Make Hay While the Sun Shines

Anyway, enough of crypto for one day.

I just moved to my new place, and it was a stunning day.

For those wondering what it's like in New Zealand, I recorded this video of me going snorkeling today.

Check it out by clicking below.

Make some time today to get some sunshine!

Cheers,

Louis Sykes
Senior Crypto Analyst, All Star Charts