- Deutscher diversifies his portfolio into sectors like infrastructure (33% of portfolio) with major stakes in Ethereum and Solana.
- His bullish outlook on decentralised physical infrastructure networks (DePIN) and AI accounts for 16% of his investments, emphasising projects like Arweave.
- Memecoins, representing 20% of his portfolio, have outperformed other sectors, with significant holdings in tokens like WIF and PEPE.
Crypto analyst Miles Deutscher believes investing in certain sectors and narratives can be beneficial in this bull market. He has divided his portfolio into various narratives, revealing a few surprises.
In a recent video he shared his approach with his 176k followers on YouTube. Here is a breakdown of his portfolio as of May 2024.
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Deutscher’s Portfolio and Sector Weighting
The first category on Deutscher’s list is infrastructure, i.e. layer-1 and layer-2 protocols.
The largest holdings should not come as a surprise, as the analyst holds 8% in both Ethereum and Solana. Deutscher notes ETH’s first mover advantages and institutional interest as the major driving factors, whereas SOL is seen as a ‘Casino’ – where SOL is used as chips and memecoins are the Black Jack and Roulette games.
Next, he holds 4% in The Open Network (TON) mainly for its future potential – he highlights the user base of Telegram with 900 million users. At 2% Deutscher has invested in Near Protocol (NEAR) and Sui (SUI) mainly as an AI play and hedge against Ethereum.
Further down the list he has Injective (INJ) and Celestia (TIA) with 1.5%, with some of the reasons for these being strong tokenomics and community.
Additionally, Deutscher invests 1% into STX and highlights the strength of the Base ecosystem which doesn’t have a token itself.
Overall, this category accounts for 33% of Deutscher’s portfolio.
DePIN and AI, Deutscher’s Most Bullish Bet
According to Deutscher Decentralised Physical Infrastructure Networks (DePIN) and AI complement each other and are among the most bullish narratives.
The biggest bet here is Arweave (AR) because it’s one of the most established DePIN projects and has recently launched the Super Computer. While Deutscher has 3% allocated to AR, he believes Render (RNDR) is another big bet in the sector, with a 2% stake.
RNDR is seen as a good choice due to its partnership with Apple and is also a leader in the space. Aioz Network (AIOZ) and TAO (Bittensor) are two more projects that receive a 2% allocation.
DePIN and AI received a 16% share of the total portfolio.
Memecoins Top Performers
Deutscher says Memecoins have significantly outperformed the rest of the market, leading him to allocate 20% of his portfolio to this sector.
He has significant holdings of WIF (5%), PEPE (4%), POPCAT (2%), FOXY (2%), GUMMY (1%) and PUFF (1%).
Gaming, RWA, and DeFi Remaining Narratives
Deutscher is a strong supporter of blockchain gaming and sees a row of projects taking off in this sector, to which he has 11% of his total portfolio allocated.
IMX, BEAM and PRIME all get a 3% allocation, while his stake in RON and PYR is 1.5% each. UOS and AEG are 1% of the portfolio.
Related: Franklin Templeton CEO Highlights Cost Benefits of Tokenisation, Says All ETFs Will Be on Blockchain
The tokenisation of Real-World Assets (RWA) has even BlackRock excited so it’s a no-brainer to have in the portfolio, which accounts for 10% of the total. Largest plays are LINK (4%), ONDO (3%), TRUF (2%) and PENDLE (1%).
Last but not least, there is the decentralised finance (DeFi) sector, which makes up 10%. RUNE and ENA are both a 3% play, while JUP, FXS and ZERO are 1% of the total.
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