Raoul Pal: The Journey Man Richard Galvin's Shocking Crypto Predictions for 2025
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Jan 16, 2025 
Richard Galvin, the Executive Chairman and CIO of Digital Asset Capital Management, shares his extensive knowledge on crypto investments and blockchain technology. He discusses the maturation of DeFi and highlights key investment strategies that adapt to technological advancements. The conversation examines the impact of AI on the evolving crypto landscape, including utility tokens and innovative projects like the Grass project. Galvin also touches on investment opportunities in AI, such as WorldCoin and the Tau ecosystem, alongside the complexities of navigating this rapidly changing market.
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Oversupply of Block Space
- Richard Galvin believes the crypto market overbuilt block space, similar to historical tech disruptions.
- This has led to an oversupply and plummeting fees, impacting protocol valuations.
Protocol Valuation
- Galvin suggests three ways to value a protocol: cash flow, security (TVL), and monetary value.
- He notes most protocols don't make sense on a cash flow or TVL basis, even Ethereum with its high multiple.
Metcalfe's Law for Protocols
- Raoul Pal proposes a Metcalfe's Law valuation model for protocols based on active users and transacted value.
- This explains why assets like Dogecoin and Ethereum have value despite differing functionalities.