Focus on the Real World Asset (RWA) narrative by considering established protocols like Clearpool (CPOOL) and Chintai (CHEX), which are approaching potential value buy zones. For a clever stablecoin play, invest in Aave (AAVE) to gain proxy exposure to the hyped World Liberty launch through a revenue-sharing agreement. Consider Avalanche (AVAX) as an undervalued alternative Layer 1 that historically rallies after Solana (SOL). For a leveraged bet on Ethereum itself without liquidation risk, Ethereum Name Service (ENS) offers a simple way to get amplified exposure. Lastly, Pepe (PEPE) is the primary meme coin to watch as a direct beta play on ETH's performance.

Market & Ethereum (ETH) Context

• The entire investment thesis is based on Ethereum (ETH) breaking its previous all-time high and sustaining the rally. If this does not happen, the altcoins discussed are unlikely to perform well.
• The speaker is cautiously optimistic about an "altcoin season." For a true altcoin season to be confirmed, Bitcoin Dominance needs to continue its downtrend for at least two more weeks and break below the 50-week simple moving average (SMA).
• The ETH/BTC chart is also critical. It has started an uptrend, but it needs to continue making higher lows to confirm its strength.
• A key catalyst to watch is the FOMC meeting on July 30th. A rate cut or dovish pivot from the Federal Reserve could fuel the rally.

Takeaways

• Monitor these three charts closely for the next two weeks:
  1. Ethereum (ETH) price: Needs to break resistance and then the all-time high of ~$4,600.
  2. Bitcoin Dominance: Needs to continue falling to signal money is flowing into altcoins.
  3. ETH/BTC pair: Needs to maintain its uptrend, showing ETH is outperforming Bitcoin.
• The speaker suggests it's better to wait for confirmation of these trends, even if it means buying altcoins 10-20% higher, rather than buying now and risking a market reversal.

Sectors to AVOID on Ethereum

The speaker explicitly advises against investing in two specific sectors within the Ethereum ecosystem for this cycle.

• Layer 2s (Arbitrum, Optimism, Polygon, etc.)
  • Reasoning: These are considered a "last cycle" narrative. They raised too much money from Venture Capitalists (VCs), and those tokens are still being sold onto the market ("vesting"). Their price charts have performed poorly, even against ETH itself. Institutions are not buying them.
• Restaking & Liquid Staking (Eigenlayer, Lido, Etherify, Renzo, etc.)
  • Reasoning: The narrative "did not pick up at all." There is little to no retail adoption because the yields (e.g., 3% on ETH) are not attractive. Wall Street institutions are also not participating in restaking.

Takeaways

• Avoid investing in popular Layer 2 tokens like ARB, OP, and MATIC. The speaker believes you will get better returns simply by holding ETH.
• Steer clear of the restaking and liquid staking narrative. Despite the technical innovation, it has failed to gain market traction.

Sectors to WATCH (Potential Future Plays)

These are established, heavily-used protocols that are currently held back by regulatory uncertainty in the U.S.

• Legacy DeFi Protocols
  • Coins Mentioned: Uniswap (UNI), Curve (CRV), Compound (COMP), Chainlink (LINK).
  • Context: These protocols are the backbone of DeFi on Ethereum, powering swaps, stablecoin trading, and data feeds. However, their tokens are in a regulatory "gray area."
  • Chainlink (LINK) was specifically called out for underperforming Bitcoin this cycle, despite its critical role in the ecosystem.

Takeaways

• These are not immediate buys for the current Ethereum wave.
• Keep these on your watchlist. If clearer, more favorable regulations for DeFi are passed in the U.S., these tokens could perform very well later in the cycle.

RWA (Real World Assets)

This is identified as one of the two primary narratives that institutions like BlackRock and JP Morgan are interested in on Ethereum. The strategy is to follow the institutional money.

• Centrifuge (CFG)
  • Mentioned as an interesting, under-the-radar RWA protocol that has already issued $400 million of RWAs on its platform.
• Maple Finance (MPL / SYRUP)
  • Has performed well since a rebrand in April and is consolidating in what could be a value range.
  • Note: It has a relatively high market cap of $520 million, but good tokenomics (FDV is similar to market cap).
• Clearpool (CPOOL)
  • Currently trading near a long-term support level around $0.10 (price at time of recording was $0.17). This is presented as a potential "value range."
• Chintai (CHEX)
  • The token is down significantly from its highs but is approaching what the speaker considers a "buy level."
  • Key Level: Needs to hold support around $0.80 - $0.82. A drop below this would be a very bearish signal.
• Aptos (APT)
  • Highlighted as a Layer 1 blockchain going "very deep into RWA." It is working on a stablecoin pilot with the state of Wyoming and has high RWA value locked, including from BlackRock's BUIDL fund.
• Multibank (No Ticker)
  • A new project from a massive traditional finance broker. They have an officially confirmed $3 billion luxury real estate RWA deal.
  • The speaker participated in the public sale at a $350 million valuation.
  • Strategy: Wait for the initial launch hype to cool down. Getting in at a valuation closer to the $350M - $800M range would be ideal.
• EstateX (No Ticker)
  • Another platform focused on tokenizing real estate deals, noted for being fully regulated in the US, UAE, and EU.

Takeaways

• The RWA narrative is a primary focus because it's what institutions are actively pursuing on Ethereum.
• Look for value plays in established protocols like CPOOL and CHEX that are near support levels.
• Consider APT as a Layer 1 blockchain with a strong, institution-focused RWA strategy.
• Keep an eye on new, high-potential projects like Multibank, but be patient and wait for a better entry price after the initial launch volatility.

Stablecoins

This is the second major narrative that institutions are focused on. The strategy is to find ways to get exposure to the growth of the largest stablecoins.

• Tether (USDT) Plays
  • Tron (TRX) is viewed bearishly. The speaker believes Tether will move its activity away from Tron to more regulated chains to comply with new U.S. laws (the "Genius Act").
  • Plasma (XPL): A new blockchain heavily backed by the Tether team. The speaker expects a very high launch valuation ($5-10 billion FDV) and plans to "buy the first dip after the launch."
  • Stable (No Ticker): Another infrastructure project backed by the Tether/Bitfinex team.
• USDC Play
  • The most direct investment is buying Circle stock once it becomes publicly available.
• Ethena (ENA)
  • A straightforward bet on the growth of their USDe stablecoin. The token's performance is tied to ETH's success and volatility, which generates Ethena's yield.
• MakerDAO / Sky (MKR / SKY)
  • The governance token for the DAI stablecoin. Considered a good, established bet on decentralized stablecoins that could also benefit from future DeFi regulatory clarity.
• World Liberty (USD1)
  • Described as the "Trump family's official DeFi platform." A token generation event (TGE) is expected in 6-8 weeks.
  • Warning: Pre-market trading is already pricing it at a very high $18 billion valuation.
  • Block Street (No Ticker): A smaller project that is considered a "beta play" on World Liberty, as its co-founder is a core advisor. The token has rallied on positive World Liberty news.
• Aave (AAVE)
  • Considered the strongest legacy DeFi play due to its direct ties to World Liberty. The World Liberty platform is a fork of Aave and shares revenue and tokens with the Aave DAO. This makes AAVE a proxy investment for World Liberty's launch.
• Pendle (PENDLE)
  • A versatile play that taps into both the RWA and stablecoin narratives by allowing users to trade yield. It has been a very strong performer this cycle and is considered a solid bet.

Takeaways

• Avoid TRX as a stablecoin play due to regulatory risks.
• For high-risk, high-reward plays, watch for the launch of Plasma (XPL) and consider buying the post-launch dip.
• For more established plays, ENA and SKY are direct bets on successful stablecoins.
• AAVE is presented as a clever way to get exposure to the hype around World Liberty without buying into its potentially inflated launch price.

ETH Alternatives & Memes

This category includes other blockchains and tokens that tend to perform well when Ethereum does, either due to technical similarities or pure narrative association.

• Avalanche (AVAX)
  • Considered one of the only two EVM (Ethereum-compatible) chains with significant real user activity (the other being Base).
  • The speaker sees it as undervalued and notes that AVAX historically pumps shortly after Solana (SOL) pumps.
  • The new DEX Black Hole (BLACK) is driving significant activity and offering extremely high yields ("DeFi summer levels") for those willing to farm.
• Base Ecosystem
  • As Base chain has no token, the primary ways to invest are:
    • Buying Coinbase stock (COIN).
    • Buying the token of the main DEX on Base, Aerodrome (AERO).
• Pepe (PEPE)
  • Highlighted as one of the only major meme coins launched on Ethereum to succeed this cycle.
  • It is considered a simple, direct beta play on Ethereum. When ETH pumps, PEPE tends to pump.
• Ethereum Name Service (ENS)
  • Framed as a "meme" and a leveraged play on ETH. The speaker notes that its chart is nearly identical to Ethereum's but with higher volatility.
  • Thesis: Holding ENS is like holding a ~1.5x leveraged long on ETH without the risk of liquidation. It has "Ethereum" in the name and a strong narrative link.

Takeaways

• If you're looking for an alternative Layer 1 that benefits from ETH's ecosystem, AVAX is the top pick and is considered undervalued.
• For meme coin exposure directly tied to Ethereum's success, PEPE is the primary choice.
• For a "smarter" beta play, ENS can be viewed as a leveraged spot position on ETH, offering potentially higher returns during an uptrend.