Blockworks Research analyst Shaunda Devens argued that crypto is likely to remain the most attractive speculative market because price and demand reinforce each other. In her view, that dynamic differs sharply from equities, where a rising share price does not directly change the underlying business. She used Apple as an example, saying that once a stock climbs to a certain level, its price-to-earnings ratio can look unreasonable against the same revenue base.
Devens said crypto works differently because token businesses are closely tied to speculation in financial assets. Higher token prices can directly drive more trading activity and greater leverage demand, which in turn lifts protocol revenue. She pointed to data from last week showing that while token gains reached as high as 60%, 10 of 16 sectors posted revenue growth that outpaced price appreciation. Perpetual futures revenue rose 243%, compared with a 43% increase in the related token price. Based on that pattern, she said tokens do not have a real short-term value ceiling, and mechanisms such as buybacks and DAT can strengthen that reflexive loop further.
ChainCatcher reported that Blockworks Research analyst Shaunda Devens said crypto will remain the best speculative market because price and demand reinforce each other.
Devens wrote that this dynamic does not apply in the same way to equities. In stocks, a higher share price does not directly affect the underlying business. Using Apple as an example, she said that once the stock reaches a certain level, its price-to-earnings ratio can appear unreasonable against the same revenue base.
She argued that crypto is different. Token businesses are, to a large extent, tied to speculation in financial assets, and higher prices directly bring more trading activity and leverage demand. As that happens, protocol revenue also rises.
She cited last week’s data to support the point. Although token gains reached as high as 60%, revenue growth outpaced price growth in 10 of 16 sectors. Revenue from perpetual futures climbed 243%, while the corresponding price increase was 43%.
On that basis, Devens said tokens do not have a real short-term value ceiling, and mechanisms such as buybacks and DAT can reinforce this reflexive cycle.
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