VC has "no clue" how Chainlink, Litecoin, other cryptos have billion-dollar valuations

Coins pertaining to this esoteric space have seen exponential rallies since the start of 2020.

Coins like Aave's LEND has gained in excess of 4,000 percent since this year started.

Although these digital assets may have their own use cases that have allowed them to retain value over time, a leading venture capitalist says that it doesn't make much sense that these cryptocurrencies are still so highly ranked.

Kyle Samani, co-founder and managing partner of Multicoin Capital, recently sat down with Coin Metrics co-founder Nic Carter to discuss his latest views on the ever-changing cryptocurrency markets.

When asked about one crucial view he had about the crypto-asset space, Samani said that the "Most important feature of a token is its market cap." He was referencing how a project gains much social legitimacy when every time someone opens Coin Gecko or Coin Market Cap, they see x or y coin.

Commenting on the specifics of this, Samani went on to say that it "Perplexes him how Chainlink has a $10 billion market cap," quipping that he "Doesn't know who is holding all these things" and who the buyers are.

Samani didn't tip his hand as to what is going to if these tokens will lose their value to competitors over time, but many in the Ethereum space think that value in "Ghost" projects will accrue to DeFi over time.

"The ghost chain reckoning is coming. There is well over $50bn in market cap value for chains no one uses. They will all be usurped by DeFi apps with actual use by the end of this market cycle."

"4 million Dai was just minted with WBTC in a single transaction. This really showcases the latent demand for non-ETH assets, and it's the beginning of a broader trend of DeFi acting as an economic vacuum that will eventually attract almost all value to the Ethereum blockchain," Christensen wrote in a comment that went crypto-viral among ETH supporters.

These coins can be deployed to the DeFi space or to be used as a means of payment on Ethereum.