Wood Backs Analysis: Centralized Players Outshine On-Chain Protocols

Cathie Wood, CEO of Ark Invest, has endorsed an analysis by her colleague Lorenzo Valiente on how to invest in this cryptocurrency cycle. According to Valiente's research, off-chain and centralized companies are capturing more value than on-chain protocols and Layer 1 chains.

The study found that off-chain companies generated roughly $70 billion in 2025, which is 8.5 times more than on-chain protocols and L1s. Centralized players abstract away cryptocurrency complexities such as custody, trading, and staking, and monetize their relationship with end-users effectively.

Wood described the analysis as offering a 'great perspective' on the best way to have invested in this crypto cycle. She recommends following developers and getting close to end-users as possible.