Opinion: Cryptocurrencies such as AAVE, SOL are Undervalued, 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 many overlooked protocols in the current crypto market. Many projects have dropped 70% to 90% from their highs but are still generating fees, maintaining growth, and holding onto their respective leadership positions.

Valente gave examples, mentioning that Aave has a P/E ratio of around 9x, Solana around 12x with $60 billion in free cash flow, Ethereum around 17x, and Uniswap around 8x EBITDA. He also referred to projects such as Avalanche, Pendle, Ethena, and Morpho, stating that if these projects were placed in 2021, they would be the top choice for VCs at current valuations, but today they are ignored by the market.

Valente believes that current market funds are chasing HYPE and NEAR because they are the current trading themes, but the next real trade may come from abandoned assets. He stated that investors do not get rich by buying into already effective trades but by buying into assets that have temporarily failed for specific reasons. The fundamentals of these projects have not dropped by 80%; what has dropped is the narrative, and the narrative will return, and fees will continue to compound.