Edit: This was written yesterday, Sunday. Today’s market crash makes everything written here even more true.

Today’s crypto market is a wild frontier where hype often trumps logic. Market valuations reveal that flashy projects backed by celebrity and influencer endorsements frequently outshine those quietly engineering the backbone of the ecosystem and generating real revenue. As a tech builder who’s more focused on crafting impactful software than chasing market cap buzz, I invite you to take a brief detour into the true value of crypto projects.

Hype Over Substance

Consider tokens like Ripple (XRP), Dogecoin (DOGE), Cardano (ADA) or TRUMP. These projects boast valuations of $166bn, $44bn, $31bn, and $21bn respectively as of Feb 2nd, 2025. The numbers create an illusion of immense value and promise.

But many of these tokens were designed with little more than a catchy idea in mind. XRP, for instance, has been entangled in controversies and questions about its centralization, raising doubts about whether its usage matches its market cap. Recent court documents have revealed that Ripple entered into over 1,700 contracts with financial institutions and companies for XRP transactions, offering insight into its commercial dealings. While these agreements have been interpreted by some in the XRP community as a bullish sign, it appears they are structured as commercial transaction terms only, a meager feat given the project’s considerable valuation.

DOGE started as a meme coin, and while its community is passionate, its lack of clear purpose and technological substance leads many to question whether its market cap is driven purely by speculative hype. ADA, promoted as a blockchain solution, has not consistently delivered on its lofty promises, making its high valuation appear disconnected from the underlying technology.

A lot of hype, but no substance yet.

The widely publicized TRUMP coin, which relies on celebrity appeal rather than technological innovation, demonstrates how market sentiment can inflate a token’s valuation despite lacking substantive use cases. It reached a peak at $70bn valuation in a matter of days, attracting liquidity from more reputable or useful projects.

Real Projects Do the Heavy Lifting

In contrast, tokens representing protocols with concrete, daily use tell a different story. Especially the leaders building in the Ethereum ecosystem which put forward most of the tech advances in the crypto industry.

Take UNI, the token associated with Uniswap, the leading decentralized exchange that handles vast amounts of trading volume. Or AAVE, the largest decentralized lending platform that directly supports users borrowing and lending assets, generating revenues from fees and interest. Similarly, Arbitrum (ARB), Optimism (OP), or Starknet (STRK) represent layer‑2 solutions that help scale networks by reducing congestion and lowering costs. They involve teams of highly skilled researchers and engineers developing advanced cryptographic techniques — Starknet, for instance, is pioneering research in zero-knowledge proofs — to create cutting-edge solutions after years of dedicated work. Yet, their combined valuation is only a tiny fraction of XRP.

There are many more examples of protocols with considerable usage, pioneers in technology like Lido (LDO), Ethereum Name Service (ENS), Curve (CRV), and other back platforms that have clear revenue models, continuous development, and a user base that relies on their functionality every day.

Beyond generating media buzz, these projects form the backbone of decentralized finance and blockchain ecosystems by facilitating transactions, enabling smart contracts, and introducing innovative financial products. Yet their market caps remain insignificant when compared with the inflated figures seen in projects that struggle to prove their value beyond speculative interest.

The Role of Information and Media

A key part of this irrational behavior stems from the information — or lack thereof — available to the general public. Many investors are swayed by surface-level metrics and buzzwords without having access to deep-dive analyses that separate tangible utility from mere promotional excitement. Mainstream journalists often stick to narratives that highlight headline-grabbing figures often with a negative spin rather than investigating the actual use cases behind the tokens. The result is an information gap that benefits projects with strong branding but weak substance.

It is easy to point fingers when the media spins narratives that favor hype over substance.

The everyday investor might see a $166bn valuation for XRP or a $44bn figure for DOGE and assume that these numbers must reflect extraordinary technological or financial innovation. The same investor might overlook UNI or AAVE, not because they lack substance but because the narrative around them isn’t as enticing or sensational. When the public does not have easy access to a nuanced view of these projects, hype, and speculation take the driver’s seat, making the market seem irrational to those who value fundamental performance over media hype.

Real Usage Remains Underreported

Projects that generate actual revenue are often reported in dry, technical terms that do not capture the excitement of headlines like “$166bn market cap!”

This creates an uneven playing field where excitement and controversy, even if unsupported by robust usage, dominate discussions. Real projects that quietly power the infrastructure of decentralized finance end up as the unsung heroes of the crypto space. They continuously process millions in transactions, power decentralized lending, and lower costs for end users, yet their contribution to the broader economic fabric of the crypto world is often ignored by mainstream media.

The undervaluation of these utility-based tokens can have significant consequences. Investors may misallocate funds to projects that do not deliver on long-term promises. A market driven by hype instead of performance can lead to excessive volatility and a higher risk of bubbles. It underscores the need for better education and more investigative journalism that prioritizes in-depth, data-driven analysis over sensationalism.

Real-World Impact at a Smaller Scale

One such project is GMX — a platform that, despite flying under the radar, delivers real utility and revenue. GMX stands out as an example of genuine usage amid the market’s overinflated narratives. Like all true blockchain projects, all the protocol data is public and visible in real-time.

A dashboard for GMX at Dune

Operating for over three years, GMX has quietly built a solid reputation. It records nearly $130 million in annual fee revenue — a clear indicator that traders rely on its decentralized trading platform. Since the protocol collects 27% of these fees — amounting to approximately $35.1 million in effective annual earnings — its current valuation of $180 million implies a Price/Earnings Ratio (PER) of about 5.1.

This PER of roughly 5.1 is modest by traditional market benchmarks, particularly given the significant growth potential inherent in blockchain technology, and contrasts sharply with the inflated valuations of projects lacking sustainable revenue streams.

Beyond the numbers, GMX’s technical backbone is a further testament to its value. The project has built a high-quality open source codebase that others have taken note of. Its code has been forked multiple times by projects that, lacking GMX’s consistent performance and community backing, end up valued even as much should they build hype campaigns on social media. This real, measurable utility, coupled with a sustainable revenue model, marks GMX as a genuinely undervalued asset in an otherwise irrational market.

Looking Ahead

The new US administration, which took office just a few days ago, signals a pro-crypto stance and ushers in a favorable regulatory climate. This political shift makes it an ideal time to adopt a fundamental approach — one that values genuine utility and technological innovation over mere speculative hype. Now is the moment for investors and developers to harness this supportive environment to drive sustainable growth across the crypto ecosystem.

A market that rewards projects based on a combination of genuine utility and active development should, in theory, see its most practical solutions receive the highest valuations. Until media narratives catch up with this reality, the crypto market will continue to be a study in contrasts. The “fake” projects, buoyed by hype, may enjoy inflated market caps in the short term, while the projects that are the backbone of decentralized applications and finance quietly build a foundation for future economic activity.

Investors who take the time to look beyond the buzz and study the numbers — examining transaction volumes, fee revenues, and the growth of user bases — will be better positioned to understand which tokens truly have value. As the market matures, it is crucial for media and analysts alike to provide a clearer, more balanced picture that helps the public separate transient hype from sustainable growth.

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