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Arca

Arca
2026-10-14 10:57:10

Arca outlines four crypto investment buckets as fundamentals start to matter more

Arca Chief Investment Officer Jeff Dorman argues that crypto investing is becoming easier to analyze through a traditional fundamental lens after years in which token prices often had little connection to business performance. In his view, improving fundamentals, better token design, a clearer regulatory setup, and continued institutional participation are pushing digital assets away from a market driven mainly by speculation. Dorman groups the most compelling opportunities into four buckets. The first is public equities tied to crypto infrastructure, with Galaxy Digital and Securitize cited as examples and Kraken named as a possible future IPO candidate. The second is existing tokens backed by real businesses and value-accrual mechanisms such as buybacks, staking rights, or fee sharing. The third is a newer class of token launches designed from day one around economic utility, with Venice AI’s VVV token presented as a case study. The fourth, and in his view one of the most overlooked, is older tokens attached to strong businesses but still burdened by weak legacy token models. He uses Brave and Basic Attention Token, or BAT, to illustrate that last category. Brave has more than 120 million users, according to the article, yet BAT historically captured little of the business value created by the browser. With Brave’s BAT 4.0 roadmap, Dorman says that gap may begin to narrow if product revenue and token economics become more closely linked.

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Arca outlines four crypto investment buckets as fundamentals start to matter more
Altcoin seaso
2026-09-20 10:31:28

Only Eight Top-50 Tokens Have Reclaimed Their October 2025 Highs, TechFlowPost Says

A TechFlowPost analysis argues that the recent surge in older altcoins has created a misleading sense that a broad-based "altcoin season" is back. Citing data shared by Arca chief investment officer Jeff Dorman, the report says that among the market’s top 50 assets, 39 are still trading well below their levels on Oct. 13, 2025, the prior cycle peak, with most still down roughly 30% to 50% from that benchmark. Recent rebounds have been sharp on a shorter time frame — ARB rose 177% from July 1, ENA gained 132%, and PUMP climbed 213% — but many of those moves came after deep drawdowns and still have not repaired losses from last year’s highs. The article says only eight names in Dorman’s comparison were above their Oct. 13, 2025 prices: VVV, ZEC, DRV, HYPE, NEAR, UNI, MORPHO, and SKY. It links several of those outperformers to protocol revenue, buyback-and-burn structures, governance changes, or new product lines. Hyperliquid’s HYPE, for example, was described as benefiting from fee and liquidation revenue that is used to buy HYPE on the secondary market before tokens are sent to an assistance fund and permanently burned. Uniswap’s UNI was tied to fee-switch-driven buybacks and burns after December 2025, while Pendle was cited as using 80% of yield and swap fees to repurchase PENDLE. The report also points to Zcash’s Nu7 upgrade and NEAR’s Confidential Intents product as examples of older tokens trying to rebuild their investment case through product and network changes rather than price momentum alone.

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Only Eight Top-50 Tokens Have Reclaimed Their October 2025 Highs, TechFlowPost Says
Arca
2026-08-19 14:20:45

Arca CIO says token valuation now hinges on how protocol profits reach holders

Jeff Dorman, chief investment officer at Arca, argues that crypto markets are entering a phase where protocol valuation can no longer be separated from capital allocation and tokenholder value capture. Writing in response to a recent thesis from Bitwise CIO Matt Hougan, Dorman said the market is finally starting to accept a framework Arca has pushed for years: digital assets should ultimately be analyzed using fundamentals and expected future cash flows, even if tokens differ from equities in how claims are expressed. The article draws a sharp distinction between protocol revenue and token value. In Dorman’s view, a protocol generating hundreds of millions of dollars in fees does not automatically make its token valuable if no credible mechanism exists for those economics to flow to tokenholders. He points to buybacks as one of the clearest ways to connect protocol success with token value, while stressing that immediate buybacks are not always the best choice for fast-growing networks that can still reinvest capital at high returns. Dorman also says the debate is often framed too narrowly. The issue is not whether buybacks are inherently good or bad, but whether tokenholders have a believable path to eventual value capture. As more mature protocols such as Hyperliquid, Aave, Aerodrome and Maple Finance produce real revenue from real users, he argues that investors may begin to narrow the valuation discount long applied to profit-generating crypto protocols.

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Arca CIO says token valuation now hinges on how protocol profits reach holders