Podcast: Hear Truvius on CoinDesk’s Markets Daily Podcast

Check out this week’s CoinDesk Markets Daily Podcast to hear Truvius CEO & Co-Founder Connor Farley provide market commentary on last week’s price action and insights on a multi-sector approach to the crypto economy: Listen here

Transcript of commentary:

Crypto markets have given a new meaning to the term “Leap Year” with digital asset markets jumping substantially in February and many assets approaching all-time highs.

Following a choppy January on the heels of the Bitcoin spot ETF approval by the SEC, crypto assets spanning all sectors and market cap sizes have gained meaningfully over the trailing month. Bellwether megacap assets Bitcoin and Ethereum are both up approximately 40% on the year, meaningfully outperforming traditional asset classes like stocks, bonds, and commodities both outright and on a risk-adjusted basis.

From a sector perspective, assets in the Information Technology and Utilities sectors, including Fetch.ai (which more than doubled in price over the month) and Render (up nearly 80% over the month), have seen particularly outsized gains. These sectors tend to exhibit meaningful beta to AI and distributed computing power – two markets with strong current traction in traditional asset markets as well.

The Media and Metaverse crypto sector also saw strong performance over the trailing month, with gaming-focused networks like Immutable rallying more than 60%.

In addition to the intersection of crypto and AI, gaming has seen a rise in both consumer and investor interest. Australia-based Immutable is a key example of an Ethereum-powered application that enables software developers to easily build and host “Web3” games (internet gaming akin to e-sports). Immutable and gaming-focused institutional investors expect that the next significant wave of blockchain adopters will enter through Web3 gaming vs. other potential use-cases like DeFi, particularly in APAC markets like Japan and Korea where NFT markets and in-game player economies have found stronger product-market fit.

From a fundamentals perspective, price momentum has been a driving factor behind recent performance. Assets with stronger price momentum have outperformed assets with weaker price momentum. Conversely, signals that assess the fundamental value of various networks and protocols—including measures focused on protocol revenue, network user adoption, and long-term holder trends—have generally underperformed price momentum signals, suggesting a more “growth”-driven environment and less a “value”-driven one.

Important Disclaimer

This communication and the information contained herein is intended solely for the information of the person to whom it has been delivered. It is not to be reproduced, used, distributed or disclosed, in whole or in part, to third parties without the prior written consent of Truvius. Neither Truvius nor any principal or agent guarantees or makes any representations as to the performance of any investment product, other investment vehicle or account managed by Truvius, the repayment of capital, income payments or any particular rate of capital or income return. All commentary contained herein is subject to revisions by Truvius.

The information presented herein, including, but not limited to, Truvius’ investment experience/views, returns or performance, investment strategies, risk management, market commentary and/or opportunity, representative strategies, portfolio construction, capitalizations, expectations, targets, parameters, guidelines, and positions may involve Truvius’ views, estimates, assumptions, facts and information from other sources that are believed to be accurate and reliable and are as of the date this information is presented, any of which may change without notice. Truvius has no obligation (express or implied) to update any or all of the information contained herein or to advise you of any changes; nor does Truvius make any express or implied warranties or representations as to the completeness or accuracy or accept responsibility for errors. The information presented is for educational purposes related to general market commentary only and does not constitute an exhaustive explanation of Truvius' investment process, investment strategies or risk management. No person (other than Truvius and its principals and employees) has been authorized to make any statement concerning Truvius and any such statements, if made, may not be relied upon. This communication has been prepared from original sources and data believed to be reliable. However, no representations are made as to the accuracy or completeness thereof. Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstance existing or changes occurring after the date hereof. Certain information contained in the presentation may constitute forward looking statements, which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “target,” “project,” “estimate,” “intend,” “continue,” or “believe,” or the negative thereof or other variations thereon or comparable terminology. This commentary is not intended, and shall not be construed, as an offer to sell, or the solicitation of an offer to purchase, any security (including the investment products or any other vehicle or account managed by Truvius), the offer and/or sale of which can only be made by definitive offering documentation which will be provided to prospective investors in connection with any offering and which will contain material information that is not set forth herein, including risk factors relating to any such investment. All information, including projections and estimates, is provided as of 3/1/2024 and is subject to change without notice.