Bull Market Signal: Store-of-Value Assets and Profit-Generators Take Center Stage

An experienced investment partner at Variant Fund has analyzed which crypto projects are likely to benefit most in an early bull market. According to Alana Levin, the current market is characterized by a shift from asking when the bottom will occur to wondering if this is just a false rally or a true beginning of a bull market.

If the bull market is indeed underway, two types of projects are expected to attract marginal dollars: those that are themselves money (store-of-value assets) and those that can generate profits. Store-of-value assets will be valued relative to Bitcoin, with the percentage of Bitcoin's market cap they represent being a key metric.

For profit-generating protocols, investors are likely to examine revenue quality, durability, margin profiles, and more, similar to public market investments. Projects that have demonstrated resilience through prior bear markets and are still led by their founders appear best positioned for higher revenue and profit multiples.