The global financial markets have recently faced significant turbulence, and the cryptocurrency sector has not been spared. As panic spreads and volatility spikes, many retail investors retreat. Yet seasoned investors often see downturns as prime opportunities to deploy capital strategically. In times like these, understanding where professional crypto venture capitalists are placing their bets can offer valuable insights.
Following former President Trump’s announcement of sweeping global tariffs last Wednesday, risk assets across the board took a hit. Bitcoin dropped 5.86% from that point—briefly falling below $75,000 for the first time since the November 5 election—while other major cryptocurrencies like Ethereum (ETH), Solana (SOL), and XRP underperformed relative to BTC. Market fear surged, with the Cboe VIX index hitting 60 for the first time since the pandemic, and the Deribit Bitcoin Volatility Index (DVOL) climbing nearly 30% in just one week.
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Amid this chaos, traditional safe-haven assets like U.S. Treasury bonds saw increased demand. But as Warren Buffett famously advised: “Be fearful when others are greedy, and greedy when others are fearful.” Now may be the time to consider high-conviction digital assets trading at significant discounts. To uncover where institutional capital is flowing, two anonymous crypto VCs shared their strategic outlook on the most promising sectors poised for growth in the coming months.
Core Keywords
- Market crash investing
- Cryptocurrency value storage
- DeFi investment opportunities
- Blockchain infrastructure
- AI and crypto convergence
- Venture capital crypto trends
- Solana ecosystem
- EigenLayer and restaking
Value Storage: Bitcoin and Ethereum Still Lead
Unsurprisingly, both investors highlighted Bitcoin as their top pick during market downturns. With gold recently reaching new all-time highs, its status as a traditional store of value is reaffirmed. Meanwhile, Bitcoin continues to solidify its role as a digital alternative—a scarce, decentralized asset increasingly adopted by institutions and sovereign wealth funds alike.
Despite short-term price swings, the long-term growth potential remains vast. Gold’s current market cap stands at approximately $20.4 trillion, compared to Bitcoin’s $1.64 trillion. One VC emphasized this disparity:
“For Bitcoin to reach parity with gold in market cap, it needs to appreciate 12 to 15 times from here. That’s one of the clearest, highest-conviction opportunities available today.”
Bitcoin’s fixed supply of 21 million coins, growing adoption through spot ETFs, and increasing geopolitical demand make it a compelling hedge against macro uncertainty.
Ethereum, while trailing Bitcoin in performance over recent years, is also viewed favorably. The ETH/BTC ratio is now at its lowest level since early 2020, suggesting potential for catch-up. Since transitioning to proof-of-stake (PoS) in 2022, Ethereum’s monetary policy has become deflationary during periods of high network usage—enhancing its value storage narrative.
Although network activity has cooled and issuance briefly turned positive due to protocol changes, valuations remain depressed. One investor noted:
“Ethereum is so cheap right now—it’s a solid entry point for long-term holders.”
With upcoming protocol upgrades like Proto-Danksharding aiming to reduce Layer-2 costs, Ethereum’s foundational role in DeFi, NFTs, and tokenized assets remains unchallenged.
Solana and DeFi: High-Risk, High-Reward Plays
DeFi tokens have suffered steep declines in 2025, with Uniswap (UNI), Aave (AAVE), Curve (CRV), and Compound (COMP) all down nearly 50% year-to-date. But both VCs believe this sector is poised for a strong rebound—especially if stablecoin yields remain low.
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“When traditional yield options are weak,” one investor explained, “capital tends to rotate back into DeFi protocols where clever users can still generate attractive returns through yield farming and leveraged strategies.” This dynamic mirrors conditions seen in 2021 before the last bull cycle.
Two projects stood out: Raydium, an automated market maker on Solana, and Hyperliquid, a decentralized perpetual futures exchange built for speed and efficiency. Both benefit from Solana’s high throughput and low fees—key advantages during periods of rising on-chain activity.
Rather than picking individual DeFi tokens, investors might consider exposure to Solana itself. The network hosts a rapidly expanding ecosystem of DeFi, NFT, and meme coin projects. Its resilience after past outages and strong developer momentum have restored confidence among institutional players.
“Solana is becoming like a DeFi index fund,” said one VC. “You get diversified exposure to innovation without betting on any single protocol.”
EigenLayer and Near: The Next Wave of Infrastructure
While the “AI + blockchain” hype of 2024 attracted massive attention, both investors agree much of it was overblown.
“Most were vaporware,” one said bluntly. “It’s typical of early cycles—like the ICO mania of 2017. But within the noise, there are real gems emerging.”
They believe the next phase of AI integration will center on AI agents—autonomous programs capable of executing tasks like booking travel or managing portfolios. A critical challenge? Ensuring these agents handle user funds securely.
Enter EigenLayer, a protocol enabling “restaking,” where Ethereum’s security is extended to external applications. Projects built on EigenLayer inherit Ethereum-level trust without running directly on its mainnet—ideal for cross-chain or high-frequency use cases.
“If your app runs on EigenLayer, your users’ funds are protected by Ethereum’s validator set,” one investor noted. This could be transformative for AI agents requiring robust security guarantees.
Despite launching its token near the peak of the last bull market—with price declines exceeding 80% since—EigenLayer now trades at under $1 billion in market cap. For contrarian investors, that represents a compelling entry point.
Near Protocol was also mentioned as a beneficiary of this trend. With its focus on AI-ready infrastructure and sharded architecture, Near offers scalability and low-latency execution—key requirements for real-time agent interactions.
FAQ: Investor Questions Answered
Q: Is now a good time to buy crypto during a market crash?
A: Historically, buying quality crypto assets during downturns has delivered strong long-term returns. With macro fears driving prices down, fundamentals often remain intact—making it an ideal window for strategic accumulation.
Q: Why are VCs bullish on EigenLayer despite its price drop?
A: Because adoption metrics and developer activity continue to grow independently of price. A lower valuation allows investors to acquire exposure at a discount while the underlying technology matures.
Q: Should I invest in DeFi or stick with Bitcoin?
A: Bitcoin offers lower risk and broad macro exposure. DeFi provides higher upside but requires deeper research. A balanced approach—core holdings in BTC/ETH with satellite positions in high-potential DeFi or infrastructure projects—is commonly used by professionals.
Q: How does Solana compare to Ethereum in DeFi?
A: Solana offers faster transactions and lower fees, attracting retail-focused apps and traders. Ethereum leads in security, decentralization, and institutional-grade protocols. Both ecosystems are complementary rather than mutually exclusive.
Q: Can AI agents really drive the next crypto cycle?
A: Not all AI projects will succeed, but autonomous agents that integrate secure blockchain execution could unlock new use cases—from automated trading to self-owned digital identities.
Q: What’s the safest way to gain exposure to these trends?
A: Diversify across layers: hold Bitcoin for stability, Ethereum for ecosystem access, select L1s like Solana or Near for growth, and emerging protocols like EigenLayer for asymmetric upside.
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While short-term volatility persists due to geopolitical and monetary policy uncertainty, institutional investors are actively rebalancing portfolios for the next upswing. From digital gold to next-generation infrastructure, the current market dip is being used not as a reason to exit—but as a rare chance to enter at favorable valuations.
For those willing to look beyond the noise, the blueprint for the next crypto cycle is already taking shape.