- Supercycle Thesis: Ellio Trades believes in a potential “Supercycle” for crypto, fueled by regulatory clarity, government involvement, and economic tailwinds.
- Barbell Portfolio Strategy: Ellio balances his portfolio with high-conviction bets on established assets like Bitcoin and Ethereum, while also allocating funds to promising Layer-1 projects, AI, gaming, and meme coins.
- Diverse Investments: Ellio’s portfolio includes a mix of traditional cryptocurrencies, emerging blockchain platforms, AI-focused projects, gaming tokens, and meme coins, showcasing a diversified approach to capitalizing on the evolving crypto landscape.
Ellio Trades, one of the biggest names in crypto, just released a new video where he dives deep into his portfolio and how he is positioning himself for the next phase of the market. He believes we are in the late stages of the cycle, and now is the time to make moves before things take off. So, let us take a closer look at his thesis and his coin picks.
Believe in the Supercycle
Ellio has built a strong case for his “Supercycle theory,” highlighting why the upcoming crypto bull market could surpass all previous cycles. Key factors include:
- Regulatory Clarity – For the first time, U.S. builders and investors can operate with confidence, thanks to a more predictable regulatory environment, removing past uncertainties that stifled growth.
- Government Involvement – Ellio suggests that the U.S. potentially acquiring Bitcoin for its reserves would be a big move that could create strong demand and validate the industry on a global stage.
- Economic Tailwinds – With the Federal Reserve expected to lower interest rates and stimulate the economy, a liquidity-rich environment could boost high-growth assets like crypto.
All in all, if his “Supercycle” thesis holds true, the combination of institutional capital and improved industry stability could make this a defining moment for the future of cryptocurrency.
The Barbell Portfolio
Ellio has shared an in-depth look at his investment strategy, which he dubs the “barbell approach.” This strategy balances high-conviction, stable bets with smaller, riskier investments across emerging categories like AI, gaming, and meme coins. Here’s a breakdown of his portfolio:
High-Conviction Bets
Ellio’s core portfolio consists of assets he believes will endure market cycles and reclaim their previous highs:
- Bitcoin (20%)
- Ethereum (10%)
- Solana (20%)
- Coinbase stock (10%)
- MicroStrategy (5%)
Layer-1 Projects
Ellio diversifies with small allocations to promising blockchain platforms:
- Avalanche (1%) – A fast and scalable blockchain that aims to offer an alternative to Ethereum by addressing issues like transaction speed and costs. Avalanche’s ability to create customizable blockchain networks makes it a key contender in the Layer-1 space.
- Fantom (1%) – A highly scalable blockchain using Directed Acyclic Graph (DAG) technology, which allows for faster transactions compared to traditional blockchains. Fantom’s focus on scalability positions it well for dApps and DeFi protocols.
- NEAR Protocol (1%) – A blockchain designed to solve issues of scalability, throughput, and low transaction costs. NEAR Protocol is unique in its approach to sharding, which allows for better scalability and a more sustainable ecosystem for dApps.
- Monad (1%) – A promising Layer-1 blockchain yet to be released, Monad promises incredible performance with 10,000 transactions per second, 1-second block times, and low hardware requirements. These features could make it a top contender for dApps.
- Berachain (1%) – An unreleased blockchain utilizing a Proof-of-Liquidity consensus mechanism. Built on top of a modular EVM-focused framework, Berachain aims to bring high performance and low latency for dApps in the DeFi space.
AI Projects
Ellio is positioning his portfolio to benefit from the rise of AI:
- Bittensor (1%) – A decentralized machine learning network where contributors can earn $TAO by training machine learning models. Bittensor aims to make AI more open and accessible, creating a collaborative environment where everyone can benefit from its insights.
- AIOZ Network (1%) – A decentralized network focused on enhancing storage and streaming services by using spare computational power. AIOZ is positioning itself at the intersection of Web3 and AI, providing faster, more secure decentralized services.
- Destra Network (1%) – A decentralized platform offering cloud computing, AI computing, and storage services. Destra Network utilizes a distributed GPU network to improve the efficiency and security of dApps.
- Akash Network (1%) – A decentralized cloud computing marketplace that connects users needing computing power with server owners. Built on the Cosmos SDK, Akash allows for more cost-effective and flexible cloud computing resources.
AI and Gaming Fusion
Ellio sees gaming as a major sector in the Web3 space, with AI playing a significant role in the development of the next generation of games. As such he has added the following to his portfolio:
- Neural AI (1%) – A platform that uses AI to generate 3D models from text or images, helping game developers create assets more quickly and cost-effectively. By reducing the time and costs of asset creation, Neural AI is positioning itself as a key player in the gaming industry.
- Echelon Prime (1%) – A Web3 ecosystem focused on evolving the gaming industry. Built on the Ethereum blockchain, Echelon Prime aims to provide tools and infrastructure to support the next generation of gaming models and economies, especially in the metaverse and blockchain gaming space.
Gaming and Web3
Ellio believes gaming will play a key role in driving Web3 adoption, and he is invested in projects that he believes are leading this shift. This includes:
- Immutable (1%) – A layer-2 scaling solution built on Ethereum that aims to provide fast, secure, and low-cost transactions for gaming applications. Immutable has gained traction for its pre-built tools that make it easier for game developers to integrate blockchain technology.
- Beam (1%) – A gaming network powered by the Merit Circle DAO. Beam aims to create a community-driven platform that empowers gamers and developers to shape the future of the gaming industry.
- Super Champs (0.5%) – A mobile gaming ecosystem built on the Base blockchain. Super Champs focuses on creating interactive and engaging mobile experiences that tap into the growing Web3 gaming sector.
- Ton Station (0.5%) – A fast-growing Telegram-based SocialFi platform that connects Web2 and Web3 gaming titles, bridging the gap between traditional gaming and decentralized technologies.
- SuperVerse (Highest Conviction) – Co-founded by Ellio, SuperVerse emerges as a leading blockchain platform tailored for gaming, boasting rapid, cost-effective transactions. Developed in collaboration with industry giants and fueled by the $SUPER token, it stands as the premier hub for Web3 gaming.
Meme Coins
Ellio has also allocated a portion of his portfolio to meme coins, which continue to capture the interest of investors. This includes:
- Dogecoin (1%) – The original meme coin that has gained widespread popularity, particularly due to its strong community and support from figures like Elon Musk.
- Pepe (2%) – A deflationary meme coin based on the popular internet meme “Pepe the Frog.” Created as a tribute to the meme, Pepe has captured the attention of the crypto community.
- MOG Coin (2%) – A meme coin that combines viral humor with a strong community, MOG aims to capitalize on the cultural impact of memes in the crypto space.
NFTs Projects
- Neo Tokyo – A networking group for developers, VCs, and creators interested in the future of crypto gaming and the metaverse. Co-founded by Ellio, Neo Tokyo is designed to foster collaboration and innovation within the space.
- Imposters – A social gaming metaverse co-founded by Ellio, Impostors bridges the gap between Twitch culture and the immersive experiences of Web3, offering a space where gamers can engage in decentralized social gaming.
AI/Meme Fusion
The fusion of gaming hype and AI technology has caught Ellio’s attention as a potentially lucrative, yet speculative, play:
- Basket (3%) – A project that combines AI technology with meme culture, and is based on the “sentinel” AI generated meme narrative.
Crypto Stock
Ellio has also added a traditional stock to his portfolio that is strongly tied to the crypto market:
- DeFi Technologies (1%) – A crypto stock that bridges the gap between traditional finance (TradFi) and digital assets. DeFi Technologies is heavily involved in the Solana ecosystem and boasts a large amount of on-chain revenue. Their deep involvement with DeFi projects offers exposure to blockchain-based financial innovations.
Trading Account
Ellio has set aside some capital to get his hands dirty in the trenches:
- Flipping (10%) – A trading account used to capitalize on market trends and fluctuations, allowing Ellio to actively trade in and out of positions for quick gains.
Final Thoughts
In conclusion, Ellio’s portfolio strategy strikes a balance between stability and risk, with a focus on long-term growth through high-conviction assets and tactical plays in emerging sectors like AI, gaming, meme coins, and Web3. However, the main takeaway is to develop a strong portfolio thesis, position yourself wisely, and stay disciplined—do not let emotions dictate your decisions when it is time to cash out.
