$ENA

According to BlockBeats, Jay Young, founder of Ethena Labs, expressed his concerns on social media about the possibility of the capital allocated to cryptocurrency running out, which could prevent altcoins from surpassing the peaks of their previous cycles. He noted that the peaks of the nominal market capitalization of altcoins in the last two quarters of 2021 and 2024 have settled at around $1.2 trillion, adjusted for inflation. Young questioned whether this represents the valuation ceiling for the globally traded retail capital in 99% of speculative projects.

Young highlighted a significant opportunity for tokens with real business models that produce tangible products and generate revenue for actual users to expand access channels to institutional investors in the stock market. Compared to the valuation of the global stock market, the altcoin market is relatively small. He mentioned that the current net asset value (NAV) arbitrage is transient, except for Michael Saylor due to the unique leverage advantage he has in his capital structure.