Multicoin Capital managing partner Tushar Jain said in a recent podcast that the crypto market has bottomed and is entering a turning point, highlighting Solana, Hyperliquid and Zcash as key investments. He argued that bad news no longer triggers sell-offs and adoption continues rising, signaling a shift in sentiment.
Market Bottom and Turning Point Signals
Jain identified several indicators that the market has reached a turning point. He noted that extreme negativity must be exhausted before a reversal, just as euphoria marks a top. When negative events like major hacks fail to cause broad sell-offs, it is a strong signal. Last month, several high-profile attacks did not trigger panic selling, while application adoption kept climbing, creating a disconnect between prices and fundamentals. Jain described this as a "perfect storm" for a market bottom.
He cautioned that a V-shaped recovery is unlikely; the market may experience a period of sideways consolidation and indifference as new narratives develop. Excluding macro black swans such as a US-Iran war escalation, he believes price lows are likely already in.
Solana and Hyperliquid: Different Strengths
Jain remains bullish on Solana as the correct technical architecture for internet capital markets, calling it the leader in spot trading and tokenized securities. However, he acknowledged that derivatives volume is migrating to Hyperliquid, which excels in that segment. Rather than being a maximalist, he holds large positions in both, viewing them as complementary. Solana offers credible neutrality crucial for traditional finance issuers like Galaxy, while Hyperliquid trades some neutrality for superior performance, which users accept due to real-time solvency verification.
On position sizing, Jain said it is an art, not a science. He uses a "minimizing regret" framework: imagine looking back in two years; which missed bet would feel worse? He also employs a "one-third rule" for entry: buy one-third immediately, dollar-cost average the second third over one to two months, and keep the final third for opportunistic dips.
Zcash: A Bet on Cypherpunk Values
Jain identified Zcash as his most obvious opportunity for 2026, despite its smaller position due to liquidity constraints. He compared its community to early Bitcoin, noting that believers held through price drops, indicating conviction rather than hot money. Zcash has no cash flows or revenue, so its value depends entirely on consensus, which Jain sees as a feature for a store of value. He believes it represents a return to the cypherpunk roots of the industry, as Bitcoin has been "captured" by institutions like BlackRock and MicroStrategy. Zcash could attract OG Bitcoin supporters facing quantum risk debates.
Jain values Zcash by its market cap rank, targeting a top-five position. He dismissed active trading, saying humans cannot control emotions, and called technical indicators useless when real-world events like geopolitical conflicts disrupt charts.
Hyperliquid Price Target and Ethena
Multicoin recently published a report forecasting HYPE at $319 within two years. Jain defended the assumptions: 35% annual growth for crypto derivatives (down from 45% historically), DEXs capturing 32% of derivatives market share (up from 16%), and Hyperliquid maintaining 30% of that segment. He noted that Hyperliquid already holds 59% of real open interest, a metric hard to fake.
On Ethena, Jain said it competes with Aave and Morpho in matching lenders and borrowers. He holds multiple positions in the lending sector due to scale effects. He praised Ethena founder Guy Young as one of DeFi's most capable, reducing execution risk.
Ethereum and Exit Strategy
Jain struggled to evaluate Ethereum, noting its inconsistent messaging on L2 vs. L1 scaling. Despite losing spot trading to Solana and derivatives to Hyperliquid, Ethereum's market cap resilience surprised him, suggesting it is viewed as a store of value.
Multicoin's exit strategy involves swapping risky assets for Bitcoin during euphoria and using Bitcoin to buy dips. They sell only when finding better opportunities, the thesis is disproven, or valuations become excessively frothy.
On Kyle's Departure
Jain said he respected his partner Kyle Samani's decision to leave Multicoin, which prompted him to reconsider his own motivations. He concluded that he wants to win and be right when others are wrong, believing blockchain will replace legacy financial infrastructure.