Viewpoint: Cryptocurrencies such as AAVE, SOL are undervalued by the market, and the next opportunity may come from overlooked assets.

BlockBeats News, June 4th. ARK Invest's Director of Digital Assets Research, Lorenzo Valente, stated that there are currently many overlooked protocols in the crypto market. Many projects have dropped from their highs by 70% to 90% but are still generating fees, maintaining growth, and holding onto their respective positions as leaders in their fields.

Valente gave examples, mentioning that Aave has a P/E ratio of around 9, Solana around 12 with $6 billion in free cash flow, Ethereum around 17, and Uniswap around 8 times EBITDA. He also referenced projects such as Avalanche, Pendle, Ethena, and Morpho, stating that if these projects were in 2021, they would be the preferred targets of VCs based on current valuations but are now being ignored by the market.

Valente believes that current market funds are chasing hype and what is near, as they are the current trade themes, but the next big trade might actually be in abandoned assets. He mentioned that investors do not become wealthy by buying into trades that are already effective but rather by purchasing assets that have temporarily failed for narrative reasons. The fundamentals of these projects have not decreased by 80%; what has decreased is the narrative, and the narrative will return, with fees continuing to compound.