Jain says crypto market is at a turning point
Multicoin Capital managing partner Tushar Jain said in the latest episode of the When Shift Happens podcast that the crypto market has already bottomed and is now in a turning phase.
He pointed to three conditions behind that call: sentiment has reached a true low, blockchain application usage and adoption continue to rise, and prices have diverged from fundamentals. Jain described the combination as a “perfect storm” that could set up a reversal.
He also said recent major hacking incidents did not trigger broad selling, which he took as another sign that market sentiment had already washed out.
Solana, Hyperliquid and Zcash are central to the thesis
On specific assets, Jain said he remains bullish on Solana over the long term and views SOL as the right architecture for spot trading and tokenized securities.
He also said Hyperliquid holds a leading position in derivatives and added that Multicoin currently has sizable exposure to both assets.
On Zcash (ZEC), Jain said Multicoin has accumulated a meaningful share of the token’s supply. He framed that position as a sign of a return to cypherpunk values in the industry, and said ZEC could move into the top five by market capitalization.
A three-part approach to position management
Jain said he uses a three-part strategy for building positions: buy one-third immediately, dollar-cost average into the second third, and keep the final third as reserve capital for a sharp market drop.
He said that structure helps keep a portfolio flexible under different market conditions. As an example, he said that during the recent Zcash code vulnerability incident, the Multicoin team observed the situation, confirmed that no hacker had exploited it, and then chose to increase its position materially.
CoinGecko data cited as a sign of market consolidation
Jain’s view was presented alongside other research pointing to a market bottom. The report also cited CoinGecko data showing that more than 50% of the 7 million altcoins created over the past four years are now dead.
That, the article said, points to an ongoing shakeout and consolidation across the crypto market. After weaker projects are eliminated, the remaining projects may perform more strongly in the next bull cycle.
Three signals Jain highlighted
- Market sentiment has bottomed, with selling pressure exhausted and buyers beginning to accumulate positions.
- Application adoption is still rising, suggesting underlying fundamentals are improving.
- Prices are not yet reflecting those fundamentals, a disconnect Jain said could be corrected in the near term.