Tokens Still Lack Fundamental Focus, Says VanEck’s Sigel
The Digital Asset Summit highlighted key themes such as regulation and macro trends, with a focus on fundamentals in the crypto market. Ryan Connor from Blockworks Research emphasized the importance of fundamentals but noted a lack of significant movement in this area.
Matthew Sigel, head of digital assets research at VanEck, stated that current token prices are predominantly driven by flows rather than fundamentals—citing a ratio of 90% flows to 10% fundamentals. He used the market cap comparison of XRP and Ethereum to illustrate his point regarding economic activity.
Sigel's firm remains selective in project investments, choosing to focus on active strategies rather than following competitors who are filing numerous single token ETFs. This approach prioritizes backing projects with strong teams and potential for medium-term value capture.
The sentiment indicates that the market has yet to prioritize fundamental analysis significantly.