James Butterfill, Head of Research at CoinShares, reports that the digital asset reserve (DAT) bubble has largely burst, with companies that once traded at 3 to 10 times their market capitalization-to-net-asset value now falling to around 1 times or less. This marks a significant correction in the trading model that previously viewed token vaults as growth engines. Butterfill suggests that the market's next move hinges on whether a price drop leads to a sell-off or if companies hold their positions for a rebound, supported by an improving macroeconomic environment and potential interest rate cuts. He emphasizes the need for structural reforms, as many firms previously amassed large vault assets without sustainable business models, leading to reputational damage. Stronger companies are now integrating Bitcoin into robust vault and foreign exchange strategies, indicating a healthier trend. Future companies must focus on credible business models and governance, using digital assets as tools rather than the core of their business.