In the rapidly evolving cryptocurrency landscape, prominent analyst Miles Deutscher has shifted his investment focus toward pick-and-shovel plays as numerous new blockchain chains continue to launch. According to Miles Deutscher's recent statement on August 14, 2025, this strategic pivot emphasizes infrastructure and supporting services that enable these emerging networks, rather than betting on the chains themselves. This approach highlights liquidity providers that power these chains, essential infrastructure like oracles and interoperability solutions, revenue-generating applications with proven product-market fit, and stablecoin issuers alongside money markets. As a trader, this insight offers a compelling framework for identifying resilient opportunities in a saturated market, where the sheer volume of new layer-1 and layer-2 projects can dilute individual chain performance but amplify demand for foundational tools.

Exploring Pick-and-Shovel Opportunities in Crypto Trading

Diving deeper into trading implications, liquidity providers stand out as prime targets. Tokens like UNI from Uniswap have historically shown strength during periods of chain proliferation, with trading volumes spiking as new ecosystems require efficient token swaps. For instance, in past market cycles, UNI's price surged over 50% in a month when layer-2 adoption accelerated, according to on-chain data from early 2024. Traders should monitor key support levels around $6.50 and resistance at $8.00 for UNI, using indicators like RSI to gauge overbought conditions. Similarly, infrastructure plays such as Chainlink's LINK for oracles provide critical data feeds to these new chains, ensuring smart contract reliability. LINK's 24-hour trading volume often exceeds $300 million during bullish phases, correlating with broader crypto market uptrends. Interoperability protocols like Polkadot's DOT or Cosmos' ATOM enable cross-chain communication, making them vital as the multi-chain narrative grows. A trading strategy here could involve pairing DOT with BTC, watching for breakouts above $5.00, backed by increased on-chain activity metrics from sources like Dune Analytics as of mid-2025.

Revenue-Generating Apps and Stablecoin Plays

Revenue-generating apps with strong product-market fit, such as decentralized finance platforms, offer tangible trading edges. Aave's AAVE token, for example, benefits from money market dynamics, where lending and borrowing activities generate consistent fees. Historical data shows AAVE's price appreciating by 40% during DeFi booms, with trading pairs like AAVE/USDT showing high liquidity on exchanges. Traders can capitalize on this by analyzing on-chain metrics, such as total value locked exceeding $10 billion, which often precedes price rallies. Stablecoin issuers like Tether's USDT or Circle's USDC, while not volatile, influence broader market liquidity. Their integration into new chains drives demand, indirectly boosting related tokens. For instance, money markets on platforms like Compound (COMP) have seen volume increases of 25% quarter-over-quarter in 2025, providing entry points for swing trades around key levels like $45 for COMP.

From a broader market perspective, this pick-and-shovel strategy mitigates risks associated with speculative chain launches, where many projects fail to sustain hype. Institutional flows into infra tokens have been notable, with reports indicating over $2 billion in venture funding for oracle and interoperability projects in the first half of 2025. Traders should consider correlations with major assets like Bitcoin (BTC) and Ethereum (ETH), where BTC's dominance above 50% often signals strength in utility-focused altcoins. For example, if ETH approaches resistance at $3,500, it could catalyze rallies in LINK or UNI due to ecosystem synergies. Risk management is crucial; set stop-losses at 10% below entry points and diversify across 3-5 such plays. Overall, this approach aligns with current sentiment favoring sustainable growth over fleeting trends, potentially yielding 20-30% returns in diversified portfolios over quarterly horizons. As new chains emerge, monitoring trading volumes and on-chain indicators will be key to spotting breakout opportunities.

In terms of cross-market insights, stock market events like tech sector rallies can influence AI-related tokens, which often intersect with crypto infra. For instance, advancements in AI oracles could boost tokens like FET from Fetch.ai, creating trading pairs with ETH for leveraged plays. Always verify data with timestamps; as of August 2025, these trends underscore a maturing market where pick-and-shovel investments provide stability amid volatility.