In this episode of the altii Crypto Talk, Christian Salow speaks with Luke Nolan, Senior Research Associate at CoinShares, about the current state of digital asset markets. Volatility remains high and sentiment is fragile, yet structural innovation across smart contracts, decentralized finance, and institutional products continues to accelerate.
The conversation begins with an analysis of the recent market correction. Luke explains how excessive leverage, large-scale liquidations, and a more hawkish macro environment contributed to the downturn. He outlines the indicators institutional investors should monitor, including open interest, order book depth, and on-chain whale activity. In the near term, he sees signs of a potential relief rally but stresses that a confirmed structural bottom requires improving market structure and macro support.
A central focus of the discussion is Ethereum. Topics include its dominance in the stablecoin market, its leading position in DeFi total value locked, and the rapid growth of tokenized real-world assets. Ethereum’s long track record, network effects, and regulatory tailwinds in the United States position it as a foundational layer for institutional adoption.
The episode also explores the long term relevance of smart contracts. Luke highlights their ability to automate execution, reduce settlement times, and eliminate intermediaries. These efficiencies could reshape parts of the financial system. The potential combination of AI agents and smart contracts is discussed as an emerging but still early-stage development.
Turning to the Ethereum versus Solana debate, Luke describes the current dynamic as competition driven by capital rotation. Over time, he expects greater differentiation and possible coexistence as use cases mature and markets become more nuanced.
Finally, the conversation addresses CoinShares’ newly launched ETP on Hyperliquid. Luke explains the protocol’s perpetual exchange model and its token economics, which include systematic buybacks funded by platform revenues. This structure creates a closer link between usage and token value, making the investment case more comparable to equity-style cash flow exposure. For institutional investors, this represents a more familiar framework within the digital asset universe.
Despite short-term volatility, the episode makes clear that digital assets continue to evolve toward greater structural maturity and institutional relevance.
Pictures © CoinShares
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