Citrini Research Shifts Focus to Crypto Infrastructure in Tokenization Bet

Why Infrastructure May Outperform Headline Assets in the Next Cycle

Citrini Research has released a 79-page report arguing that the next wave of value in cryptocurrency will come from infrastructure rather than headline assets like Bitcoin or Ether. The firm, known for its deep dives into blockchain trends, analyzed tokenized assets and agentic AI to identify where sustainable growth is most likely to emerge. Its conclusions point to specific protocols that enable fee generation through real-world use cases rather than speculative price moves.

The report highlights AAVE, UNI, ETHFI, PENDLE, and ONDO as top picks in what Citrini describes as a strategic pivot toward the plumbingof crypto. These tokens represent lending, decentralized exchanges, liquidity restaking, yield trading, and institutional-grade on-chain finance—areas where revenue models are tied to activity rather than sentiment. Citrini argues that as tokenization of real-world assets scales and AI agents begin interacting with blockchain protocols, demand for reliable, fee-earning infrastructure will outpace simple store-of-value narratives.

Citrini’s analysts contend that Bitcoin and Ether, while foundational, offer limited upside compared to protocols that capture value from usage. The report notes that AAVE and UNI have consistently generated fees through lending and trading, even during market downturns. ETHFI and PENDLE, meanwhile, expose investors to yield-generating mechanisms tied to Ethereum’s restaking ecosystem and fixed-income trading. ONDO stands out for its focus on bringing traditional financial assets like bonds and loans onto blockchain rails with institutional compliance.

Can Fee-Earning Protocols Deliver Sustainable Growth Amid Market Volatility?

The firm emphasizes that tokenization is not just about creating digital versions of stocks or real estate—it requires robust middleware for custody, oracle integration, and smart contract automation. Agentic AI, which Citrini defines as autonomous systems capable of executing financial strategies on-chain, will further increase demand for reliable infrastructure. These agents need low-latency access to liquidity, secure lending markets, and programmable yield—services provided by the very protocols Citrini is highlighting.

Citrini acknowledges that infrastructure tokens are not immune to price swings but argues their underlying economics provide a floor. Unlike meme coins or pure play layer-1 bets, these projects generate revenue that can be distributed to token holders via buybacks, staking rewards, or fee shares. The report cites AAVE’s fee switch and UNI’s ongoing governance discussions around fee distribution as early signs of this model maturing.

Looking ahead, Citrini warns that regulatory clarity will be pivotal. If tokenized assets gain traction in traditional finance, protocols with strong compliance frameworks like ONDO may see accelerated adoption. Conversely, crackdowns on DeFi could hinder growth. Still, the firm maintains that the long-term trend favors infrastructure because it serves both retail and institutional users seeking yield, efficiency, and access—qualities that speculative assets alone cannot guarantee.

Frequently Asked Questions

What does Citrini mean by plumbingin crypto? Citrini uses plumbingto describe the underlying infrastructure—like lending platforms, exchanges, and yield protocols—that enables crypto to function and generate real economic activity, rather than just the assets being traded.

Why does Citrini favor AAVE and UNI over Bitcoin or Ether? The firm believes AAVE and UNI offer better risk-adjusted returns because they earn fees from actual usage, providing a more tangible value proposition than store-of-value narratives dependent solely on market sentiment.

How does agentic AI relate to Citrini’s infrastructure thesis? Agentic AI refers to autonomous AI systems that can interact with blockchain protocols to execute trades, manage loans, or optimize yield—creating new demand for reliable, programmable infrastructure like the protocols Citrini recommends.