The Milk Road Show Why Most Layer 1s Won’t Justify Their Valuations in 2026 (And Where the Real Upside Is) w/ Santi
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Dec 17, 2025 Santiago Santos, Founder and CEO of Inversion Capital, is a prolific crypto investor with insights into over 150 startups. He discusses the impending valuation pressures on Layer 1 blockchains and posits that future opportunities may lie in overlooked areas. Santi explains the shift needed in valuation approaches, likening blockchains to enterprise software. He also dives into the importance of deep-end projects and the expected legislative environment in crypto. With a cautious yet optimistic view for 2026, he emphasizes the need for capital preservation in a volatile landscape.
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Technology Is Real But Valuations Are Priced Ahead
- Crypto's technology potential is real but markets often price in future success now.
- Santiago Santos warns valuations (e.g., 380x revenue) are hard to justify without corresponding usage and revenue.
Acquire Businesses And Layer In Blockchain
- Buy real businesses and layer blockchain utility to improve their unit economics.
- Santiago recommends acquiring companies, upgrading finance with stablecoins, and recycling capital to scale adoption.
Blockchains As Enterprise Software
- Blockchains should be viewed as enterprise software and operating systems for finance.
- Santiago argues firms will choose chains for reliability and business fit, not token hype.