Crypto is Bottoming. We’re About to Go Much Higher.
Crypto is Bottoming. We’re About to Go Much Higher.
YouTube32 min 27 sec
Watch on YouTube
Note: AI-generated summary based on third-party content. Not financial advice. Read more.
Quick Insights

Accumulate Hyperliquid (HYPE) on price dips caused by Bitcoin volatility, as its expansion into real-world asset perpetuals and aggressive buybacks provide a strong fundamental floor. Consider a 6 to 12-month staking position in Lighter (LIT) to capitalize on its Robinhood partnership and institutional-grade relative strength. A contrarian opportunity exists in Zcash (ZEC) ahead of the July 28th Ironwood upgrade, with a price target of $650–$700 if it recovers its historical market cap ratio against Bitcoin. Actively farm the Variational points program before the end of Q3 to position for a potential year-end token launch valued between $1B and $3B. Shift allocations from Bitcoin to these high-conviction assets in mid-to-late Q3 to front-run the expected market recovery in the fourth quarter.

Detailed Analysis

Hyperliquid (HYPE)

The speaker maintains a long-term bullish stance on Hyperliquid, having discussed and farmed the asset for over two years. He views it as a leader in the evolving decentralized perpetual exchange (Perp DEX) space.

  • RWA Focus: The core bullish thesis relies on Hyperliquid’s HIP3 and its focus on Real World Asset (RWA) perpetuals (gold, oil, equities). The speaker believes RWA perps will eventually surpass crypto perps in volume.
  • Buybacks: Hyperliquid has purchased approximately 3.4% of its circulating supply year-to-date, providing a fundamental floor and showing strength relative to other altcoins.
  • Market Independence: The speaker notes that HYPE has recently shown signs of being "untethered" from Bitcoin’s price weakness, hitting new all-time highs despite market volatility.

Takeaways

  • Accumulation Strategy: View dips in HYPE caused by Bitcoin volatility as buying opportunities rather than structural failures.
  • Sector Shift: Look beyond "crypto-only" exchanges; the growth is expected to come from TradFi retail users shifting from options to perpetuals.

Lighter (LIT)

LIT is a recent addition to the speaker's portfolio, purchased during the recent market downturn. It is highlighted as one of the few institutional-grade assets showing relative strength.

  • Distribution Catalyst: The partnership with Robinhood is viewed as a major catalyst for retail distribution.
  • Aggressive Buybacks: The project has bought back roughly 6.3% of its supply, which the speaker considers a very important fundamental indicator.
  • Price Action: Like Hyperliquid, LIT has hit new all-time highs recently, suggesting it is being driven by specific project fundamentals rather than general market beta.

Takeaways

  • Bullish Sentiment: The speaker is overweight LIT, betting on it being one of the "main winners" for the upcoming cycle.
  • Staking: The intention is to hold and stake LIT over a 6 to 12-month horizon to capture the full cycle move.

Zcash (ZEC)

After selling near the lows in June due to a potential vulnerability scare, the speaker has "aped" back into ZEC, citing a thesis of "anti-fragility."

  • The "Ironwood" Upgrade: A new shielded pool called Ironwood is launching July 28th. It aims to make the protocol quantum-proof and utilizes formal verification (AI-assisted auditing) to eliminate counterfeit bugs.
  • The "Shakeout" Narrative: The 60% price drop in June is now viewed as a "massive washout" of weak hands. The speaker believes a recovery from this "unknowable fear" makes the asset stronger.
  • ZEC/BTC Ratio: The speaker is betting on the ZEC/BTC ratio (currently ~0.8%) returning to or exceeding 1%. If ZEC hits 1% of Bitcoin's market cap, it implies a price of $650–$700.
  • Risk Factors: The speaker admits that with privacy protocols, it is technically impossible to prove with 100% certainty if a past exploit occurred, which remains a lingering risk.

Takeaways

  • Contrarian Play: The speaker has sold some Bitcoin to fund this ZEC position, viewing it as a "Texas Hedge" against Bitcoin's lack of privacy and quantum resistance.
  • Narrative Shift: Watch for Zcash to catch inflows from Bitcoin investors who are concerned about Michael Saylor’s influence or Bitcoin's slow adoption of quantum-proof tech.

Variational (Points/Airdrop)

While not yet a tradable token, the speaker is heavily farming Variational as a future winner in the Perp DEX sector.

  • TradFi Traction: Roughly 25% of Variational’s Open Interest (OI) is currently in TradFi markets, which aligns with the speaker's RWA thesis.
  • Timeline: The points program is expected to end by the end of Q3, with a potential Token Generation Event (TGE) by the end of the year.
  • Valuation Estimates: The speaker speculates a launch valuation of $1B to $3B FDV (Fully Diluted Valuation), depending on how HYPE and LIT perform.

Takeaways

  • Actionable Farming: The speaker suggests using Variational for organic trades or "Texas hedging" (shorting assets like SUI against a spot portfolio) to accumulate airdrop points.

Investment Themes & Market Outlook

The "Perp DEX" Thesis

  • Perps vs. Options: The speaker believes perpetual swaps are a superior delta-leverage instrument for retail compared to options because they are simpler to understand.
  • RWA Dominance: The next leg of the bull market won't come from crypto natives, but from TradFi retail betting on gold, oil, and equities via on-chain perps.

Market Cycle Timing

  • Bottoming Process: The speaker argues we have been in a bear market since July/August of last year (when ETH hit $5k and euphoria peaked), suggesting the market is primed for a move higher.
  • Q4 Front-Running: Since many investors are waiting for a "Q4 bottom," the speaker suggests reallocating in mid-to-late Q3 to front-run that expected liquidity.

Bitcoin (BTC) Concerns

  • Saylor Risk: The speaker expresses concern that Michael Saylor (MicroStrategy) has become too large a part of the Bitcoin narrative, creating "execution risk" and making the asset "harder to root for."
  • Quantum Vulnerability: A lack of urgency from Bitcoin developers regarding quantum resistance is cited as a reason to diversify into assets like Zcash.
Ask about this postAnswers are grounded in this post's content.
Video Description
After getting rekt in June, I touched some grass on my honeymoon in Japan the last few weeks. After the mental reset, I did what any responsible adult would do: buy more crypto. In this video I share a more optimistic view around the market cycle, and why I remain bullish perp DEX coins (HYPE/LIT) as well as ZEC. It hurts buying something back after losing a lot of money on it, but sometimes that's what needs to be done. Join the HFA Premium Discord: https://whop.com/humble-farmer-army Free Newsletter: https://hfaresearch.substack.com/ New Channel: https://www.youtube.com/@FarmerTaiki Taiki's Twitter: https://twitter.com/TaikiMaeda2 HFA Research Twitter: https://twitter.com/HFAresearch PODCASTS: Crypto Market Wizards: https://www.youtube.com/playlist?list=PL6bwqqJO_txgGQySGK5-HSuTPp0LjeGqA Steady Lads: https://www.youtube.com/@0xSteadyLads Timestamps: 0:00 Portfolio Updates 0:29 BTC & Market Cycles 4:30 HYPE/LIT & Perp DEX Thesis 12:40 Buying Back ZEC 28:28 Final Thoughts MY VALUES: QUALITY OVER QUANTITY A lot of content creators are incentivized to pump out content for ad revenue. Taiki has never run YouTube ads on his channel because he believes in creating quality content, not monetizing your eyeballs via ads. On top of not running any YouTube ads, Taiki has never participated in a paid promotion, a channel sponsorship, or even a CEX ref-link. PREMIUM RESEARCH HFAResearch offers a Premium subscription. This is not meant to be a "copy trading" service or a “pump and dump” signal group. Taiki publishes two premium videos and an AMA livestream every week. Think of Taiki as your personal research analyst that keeps you on top of the markets so you can focus on what you do best. You also gain access to a private discord with the largest premium DeFi community. There, Taiki also gives frequent updates as well as real-time analysis on current events in crypto.
About Taiki Maeda
Taiki Maeda

Taiki Maeda

By @thehumblefarmer

Welcome to my channel, where I share actionable crypto market insights and airdrop/yield farming strategies. My content focuses on interviewing the top crypto traders/investors and sharing my investment theses in crypto. I focus a lot on fundamental analysis and trying to understand why and how the markets move. I am also the CEO of HFA Research, one of the top crypto research firms; you can subscribe to HFA Premium in the link below. I do not run YouTube ads, participate in seed investments, nor do paid promotions. So don't bother asking me to shill your project. Nothing is Financial Advice.