PRO | 🥛 How to check your portfolio’s pulse 🫀

GM! Welcome to Milk Road PRO – the newsletter designed to sooth the pain of a declining portfolio, with a dose of insight-driven dopamine! 

Today, we're diving back into our portfolio to reassess whether our positions still have that bullish potential.

Because so far, the market doesn't seem to be sharing our optimism… 

Just take a look at the performance of the positions we skipped in part one of our portfolio review:

Only $SOL is holding steady around 15%, while the rest of our portfolio has suffered double-digit losses since inception. 🤕

To be fair, even Bitcoin has remained roughly flat for the selected time period.

However, when we look at the broader stock market, both the S&P 500 and Nasdaq have gained around 12%.

Yes, crypto has been underperforming so far, but we're only looking at a 5-month period. 

This isn't a long enough timeframe for investors to determine whether an investment is definitively ‘good’ or ‘bad.’

Instead, let's dive into each of our positions to assess whether we're still bullish or if any concerns have emerged.

Reminder: This is part 2 of our portfolio update series. If you haven’t read part 1 yet, feel free to check it out here – and/or view our complete portfolio here.

Here’s the agenda for each of our positions in today’s report:

• KPIs: A quick snapshot of key performance metrics.

• Recent developments: An overview of the latest strategic moves, new integrations, and any game-changing announcements.

• Price movements: An analysis of recent price trends and how these projects are navigating the volatile market.

• Conclusions: Insights on whether our investment thesis for that position remains strong.

Before we jump in, there's something spicy we need to talk about—the buzz around Ethereum and its rapidly dropping fees, especially after the fee-reducing Dencun upgrade. 

See below:

Back in March, Ethereum’s weekly fees were soaring at $150M, but now they've plunged to just $10M—a jaw-dropping 90% drop. That’s huge, right? 

For cash-flow-driven investors, this can change things. 

With such a dramatic shift, the way we value Ethereum based on its cash flows has completely transformed.

Let’s look at the Price-to-Sales (PS) ratio, a crucial metric for evaluating its true value for these types of investors.

Right now, Ethereum is sitting at an eye-popping 1,200x Price-to-Sales (PS) ratio. 

To put that in context, traditional markets typically see Price-to-Earnings (PE) ratios around 30x, which is similar to PS. 

That said, all Layer 1 blockchains are currently trading at significant premiums. 

Why is that happening? Simply put, we’re still figuring out how to properly value these assets.

The market is evolving so quickly that traditional valuation methods don’t fully apply—leaving plenty of room for speculation and high premiums.

Take a look at the table below for the PS numbers for top L1s. 👀 

So, there’s likely something beyond cash flows driving these massive valuations. 

The most probable explanation? It’s the monetary premium that people are assigning to these assets.

But, shoot, we're getting a bit ahead of ourselves. 

We wanted to give you some context and highlight the challenging situation surrounding Ethereum right now.

Let’s dive in…

ETHEREUM ($ETH)