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Re7 Capital is a research-driven digital asset investment firm specialising in DeFi yield and liquid alpha strategies. Re7 Labs, its innovation arm, which specialises in on-chain risk curation, vault management and DeFi ecosystem design.
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This Week at Re7:
Re7 Capital Wins Dual Honours at the Hedgeweek Awards
Re7 Capital has been named Liquid Ventures Fund of the Year for both Annual Excellence and Sustained Excellence titles at the 2025 Hedgeweek Global Digital Assets Awards. The recognition highlights our performance, consistency, and institutional-grade approach to DeFi. Read the full feature in Hedgeweek
Evgeny Gokhberg Joins Opalesque’s “Small Managers – BIG ALPHA” Webinar Today
Re7 Capital’s Founder & Managing Partner, Evgeny Gokhberg, will speak at today’s Small Managers – BIG ALPHA webinar hosted by Opalesque, sharing how Re7 is navigating digital asset cycles and deploying across yield, liquid tokens, and venture.
Tune in at 11am ET to hear how one of the space’s most active DeFi managers is capturing real alpha.
Re7 Capital to Speak at DigiAssets London 2025 🇬🇧
Re7 Capital’s Founder & Managing Partner, Evgeny Gokhberg, will join the DeFi Panel on June 18 to discuss how institutions are navigating DeFi yields, compliance, and infrastructure. Don’t miss this deep dive into the future of institutional on-chain finance.
Re7 is Hiring!
Re7 Capital is a London-based cryptoasset investment firm. Re7 utilizes our deep crypto network and proprietary data infrastructure to drive investment decisions for a number of fund strategies. Re7 has the following open roles:
Investment Analyst(Liquid Token)
We want to hear from you!
Summary
In this edition, we cover:
Market update
Beta relative strength
Divergence between underlying adoption and valuations priced in BTC
Impulse Higher
Cryptoasset markets are resuming their upwards trend as sentiment remains buoyed following the recent Q1 correction.
Crypto global market capitalisation has reached has surpassed $3.4T once again while BTC is on track to close its highest weekly print at $109k.
Beta Strength
The challenge for investors remains outperformance of alts vs. beta. Alts (outside of top 10) dominance as a ratio of BTC dominance is at inception-to-date support.
Key drivers include the proliferation of access vehicles (e.g. corporate treasury holdings or spot ETFs etc) allowing individuals or institutions to gain exposure to crypto without directly owning or managing the crypto itself.
The access vehicle playbook is now carrying over to other assets aside from BTC.
In April, we also saw notable strength in ETH (+40.5%).
It was a month where ETH outperformed all other macro sectors by at least 30%. Potentially increasing demand on the one side with large token overhang for many alt assets on the other side.
Divergences
Yet, with this divergence comes opportunity. Not all alts are born equal and we continue to see new record level adoption (stablecoin supplies, perp volumes, DEX/CEX volume ratio).
As we’ve highlighted before, this cycle is defined by dispersion favouring active managers that can filter out the noise of alts being challenged by beta in aggregate.
Take lending.
If we take sector global active loans denominated by BTC, we are at new ATHs. Yet, BTC-denominated FDV of the sector has yet to reflect this growth.
At a certain point, active loans can only grow so much where their valuations need to re-rate to reflect the new reality.
This is intuitively clear: lending protocols typically profit from interest rate spreads, so as borrowing increases, so does the potential for revenue.
We can see this historically when charting active loans over FDV at a sector level.
Take decentralised exchanges.
We see DEX volume denominated in BTC increase over the past month while sector level valuations have yet to reflect this growth.
Primary monetisation for DEXs are trading fees, often a % of trading volume.
This recent divergence between sector level DEX volume and valuation to new all-time-highs in the volume/FDV ratio.
Re7’s market intelligence system suggests there are many other examples of this dynamic playing out across the entire market.
So while beta relative strength has been notable, it’s not the complete picture.
It’s potentially creating divergence opportunities for select names with maintained adoption rates this cycle.
Updates on Re7 Lab Vaults
2 major new chain launches for Morpho last week, supported by Re7 Labs:
Re7 WETH, USDT0 and USDC vaults are now live on Unichain with 6-10% APYs, accepting wstETH, weETH, wBTC and other blue-chip assets as collateral.
Re7 pUSD is also live on Plume with 16% APY and ~$30m in supply in less than a week since launch. Nest assets nALPHA, nBASIS, nTBILL and nCREDIT are accepted as collateral.
Additional $490k in $AVAX incentives went live this week on our Euler Avalanche Re7 Labs Cluster, directed towards major stables USDC, AUSD, deUSD and sdeUSD. Enjoy 12%+ supply APY on stables and 80%+ Max ROEs on leveraged looping positions.
Borrow limits for rstETH, curated by Re7 Labs, have been increased on Gearbox to 35k wstETH (~$110m), making the largest ETH market in there even bigger
Make sure to join Re7 Labs Alpha Telegram channel for more DeFi vault announcements this week.
Disclaimers
The content is for informational purposes. None of the content is meant to be investment advice. Use your own discretion and independent decision regarding investments. The opinions expressed in all Re7 public research articles are the independent opinions of the authors at the time of publication and not the opinions of the affiliates of Re7.
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