Consider investing in leading DeFi protocols like Aave (AAVE), which is viewed as a potential buy due to its strong brand and recent price decline, and Morpho (MPHO) for its growing institutional adoption. A contrarian bullish case exists for Ripple (XRP), as its aggressive acquisition strategy is seen as a key driver that could help it outperform other large-cap cryptos. The explosive growth of stablecoins presents an opportunity in traditional finance; watch Visa, as its stablecoin settlement volume is predicted to grow from $3.5 billion to over $100 billion by 2026. Another strategy is to invest in publicly-traded, crypto-enabled businesses like Robinhood (HOOD), which are seen as potentially outperforming pure crypto infrastructure providers. Finally, the DePIN sector is predicted to see a resurgence by 2026, so monitor projects that are successfully shifting from token incentives to real revenue generation.

Ripple (XRP)

• One speaker (Santiago) is notably optimistic about Ripple, stating it has a higher probability of reaching its all-time high than almost any other top 10 crypto, including Ethereum.
• This optimism stems from Ripple's strategic use of its treasury to make significant acquisitions, such as Hidden Road, G Treasury, and Rail.
• The speaker believes Ripple is effectively using its token and resources to buy real businesses, build distribution, and grow into its valuation, contrasting it with other projects.
• He describes Ripple as a "force not to be reckoned with" due to its strong business development ("BD muscle") and centralized product decision-making, which he sees as a winning strategy.
• Despite this bullishness on the company's strategy, the speaker notes he does not personally own XRP because it's "hard to underwrite" as a non-trader.
• The current fully diluted valuation was mentioned as $188 billion for XRP, with the private company valued around $40 billion.

Takeaways

• Consider Ripple's aggressive acquisition strategy as a key driver for potential future growth. While many crypto-native investors have been skeptical, the company is actively building a portfolio of real-world businesses.
• The discussion presents a contrarian bullish case for XRP, suggesting it may have more room to grow into its valuation compared to other large-cap crypto assets, especially if the broader market faces headwinds.
• The speaker highlights a potential disconnect: you can be bullish on Ripple's business strategy without necessarily being able to justify an investment in the XRP token itself, pointing to the complexity of its valuation.

Ethereum (ETH)

• A speaker (Santiago) expressed a very bearish sentiment on Ethereum, stating he believes it is less likely to reach its all-time high compared to Ripple (XRP).
• The valuation of ETH (mentioned as $350 billion) is seen as disconnected from its fundamentals, with the speaker arguing it is not worth that much.
• He criticizes Ethereum's decentralized product strategy and business development, pointing to the departure of key figures like Justin Drake to Stripe as a negative sign.
• Another speaker (Rob) presented a counter-prediction: Ethereum will implement an upgrade to charge higher "rents" (fees) to Layer 2s (L2s) in 2026 to improve its value accrual.
• The overall prediction for a basket of top Layer 1s (L1s), including ETH, was split: one speaker predicts they will be lower by the end of 2026, while another predicts they will be higher.

Takeaways

• There are conflicting views on Ethereum's future. The bearish case is that its valuation is too high and its decentralized governance model hinders effective business development.
• The bullish counterpoint is that Ethereum may take steps to improve its economic model by capturing more value from the L2s that rely on its security. This could be a major catalyst if it happens.
• Investors should monitor discussions around Ethereum's roadmap for changes to its fee structure and value accrual mechanisms, as this was identified as a key factor for its future performance.

Stablecoins

• A major theme of the podcast was the explosive growth and adoption of stablecoins.
• Prediction: Visa's stablecoin card settlement volume will grow from an annualized $3.5 billion to over $100 billion in 2026. Visa is expected to start highlighting this on every earnings call.
• Prediction: Stablecoin-backed USD bank accounts will become mainstream in several emerging markets, leading to visible capital flow effects and discussions by central banks.
• Prediction: The use case for stablecoins will expand beyond payments into corporate treasury management and cross-border B2B payments. One speaker predicted that over 25% of cross-border payments will be on stablecoin rails by the end of 2026 (though this was noted as an aggressive target, up from less than 1% today).
• Circle (USDC) was mentioned as the "best performing IPO of the year," highlighting strong market sentiment for regulated stablecoin issuers.
• Tether (USDT) was predicted to continue losing market share to USDC and other specialized stablecoins, though this trend has been slower than previously expected.

Takeaways

• The stablecoin sector is viewed as one of the most promising areas for growth in crypto, with clear real-world use cases.
• Look for companies that facilitate stablecoin payments and infrastructure, as they are poised to benefit from this trend. Visa was specifically mentioned as a key player to watch.
• The growth of stablecoins in emerging markets presents an investment theme. Fintechs and banks offering USD-denominated accounts powered by stablecoins could see significant adoption.
• Publicly traded companies with exposure to the stablecoin ecosystem, like Circle, could be direct beneficiaries of this narrative.

DeFi Applications & The "DeFi Mullet"

• The "DeFi Mullet" concept (mainstream fintech UX on the front, DeFi rails on the back) is predicted to come back "10 times stronger" in 2026.
• Fintechs and brokerages like Robinhood, Klarna, and Revolut are expected to increasingly adopt DeFi protocols for lending, yield, and trading to improve efficiency.
• Aave (AAVE) and Morpho (MPHO) were highlighted as key lending protocols that could benefit.
  • Aave is noted for its strong brand, deep liquidity, and "sticky" deposits, making it a potential buy after its token price has fallen.
  • Morpho is seen as having strong momentum, with integrations into Coinbase, Revolut, and WorldCoin. It is frequently mentioned in conversations with institutions.
• Pair Trade Prediction: A basket of DeFi applications will "grossly underperform" a basket of L1s. The reasoning is that DeFi apps capture ~70% of total fees in crypto but represent less than 10% of the market cap, while L1s are the opposite. This valuation mismatch is expected to correct.

Takeaways

• Consider investing in leading DeFi application tokens like AAVE and MPHO, as they are positioned to benefit from integration with traditional finance.
• The "DeFi Apps vs. L1s" pair trade is a specific thesis presented. This would involve going long on a basket of revenue-generating DeFi protocols and short on a basket of L1s like Ethereum or Solana.
• When evaluating DeFi protocols, focus on those with strong brand recognition (Aave) or those securing key partnerships with mainstream platforms (Morpho), as these are signs of a durable competitive advantage.

Prediction Markets

• This category is expected to be one of the fastest-growing in crypto.
• Prediction: Prediction market volume and open interest will 10x in 2026.
• The main players discussed were Polymarket and Kalshi.
• While sports betting is currently a dominant category, growth is expected to come from markets related to business and finance—"everything that a hedge fund cares about."
• Prediction: 2026 will be the year of the "prediction market wars," with increased competition from new crypto-native projects and traditional players like DraftKings and Robinhood.
• This increased competition is expected to drive total volume up but decrease the market share of current leaders Polymarket and Kalshi.

Takeaways

• The prediction markets sector is a high-growth area to watch.
• While Polymarket has seen a massive valuation increase (15-30x in a year), its future growth depends on fending off significant new competition.
• Investors should watch for new entrants in this space, especially from established financial and gaming companies, as they could quickly capture market share.

Crypto-Enabled Businesses

• A key theme was that traditional businesses implementing crypto could be better investments than crypto-native infrastructure providers.
• Thesis: A basket of crypto-enabled businesses (Western Union, Klarna) will outperform a basket of crypto infrastructure providers (Solana, Circle).
• Klarna was highlighted for implementing its own stablecoin. Despite its stock underperforming Circle's post-IPO, one speaker would buy Klarna over Circle "by a country f***ing mile" based on a mean-reversion thesis.
• Robinhood (HOOD) was mentioned as a successful investment, with its acquisition of Bitstamp cited as a key bullish signal.
• The discussion emphasized that founder-led public companies are more likely to successfully push into crypto than those run by committee.

Takeaways

• Look for publicly traded, founder-led companies that are actively integrating crypto and blockchain technology into their core products.
• The "re-rating" of a forgotten, low-multiple stock like Western Union after it adopts crypto could offer significant upside, even if the underlying business has struggled.
• This is an indirect way to gain exposure to crypto's growth, potentially with less volatility than investing directly in tokens.

Ethena (ENA)

• Ethena was mentioned as a potential investment, with one speaker noting it would be their second choice after Aave in a "gun to your head" scenario.
• The bullish case for Ethena is that it acts as a hedge against a bearish market view. If markets rip and rates go down, Ethena's business model (which benefits from persistent funding rates) could do very well.
• The project is seen as having a strong team with good business development ("beady muscle") and a compelling product offering in the stablecoin space, often described as being more like a credit fund.
• However, a potential risk mentioned was a lack of clarity around token unlocks.

Takeaways

• Ethena (ENA) can be viewed as a pro-cyclical asset that performs well in a bullish, risk-on crypto market.
• It represents a play on the "stablecoin narrative" but with a different mechanism (delta-neutral yield) than traditional asset-backed stablecoins.
• Investors should be mindful of the tokenomics, specifically upcoming unlocks, which could create selling pressure.

DePIN (Decentralized Physical Infrastructure)

• While the "app chain thesis" and DePIN did not have a great 2025 from a token price perspective, a "DePIN summer" or "DePIN 2.0" is predicted for 2026.
• Prediction: On-chain revenue from DePIN projects will grow 3x from its current level of $40-50 million.
• Projects like Helium, Hivemapper, Dawn, and GeodeNet are expected to start generating real, albeit modest, revenue ($5-10 million a year).
• The key shift will be from being incentive-led protocols to revenue-led protocols, with founders who are focused on building real businesses.
• Adoption metrics, such as Helium's user growth and network burn, are showing real demand that transcends speculation.

Takeaways

• The DePIN sector may be poised for a rebound, driven by a shift in focus from token incentives to sustainable revenue generation.
• Investors should look for DePIN projects that can demonstrate real-world demand and a clear path to profitability, not just user growth funded by token emissions.
• While token prices have underperformed, the underlying adoption metrics for some projects suggest the thesis is still intact, potentially offering a value opportunity.