Bitcoin has experienced a period of stagnation, and altcoins have also been in a continuous adjustment, leaving many feeling confused. Everyone is worried about whether Bitcoin will fall below $90,000 and whether altcoins will further set new lows.
This kind of sentiment actually lacks substantial basis and is more of an emotional reaction, categorized as 'emotional prediction.' This anxiety often stems from an over-interpretation of market trends, especially for novice investors, who often experience what is termed 'newbie anxiety syndrome.'
These people tend to stay in the model of the previous market cycle, as the market trends from April to September 2024 have similar conditions. However, entering 2025, the market environment will change, and if investors continue to judge according to old thinking, they may miss new opportunities.
In the past two days, secondary altcoins have been heavily drained by on-chain AI, leaving basically no market movement. This situation may continue until February. Yesterday, various golden dog AIs and AI framework swarms were extremely FOMO. After launching Moonshot yesterday, the $100 million FDV directly doubled the price, further driving up ALCH and others.
Recent focus can shift appropriately toward on-chain, as the profit effect on-chain has been quite good, and golden dogs on-chain are still continuously emerging.
(1) buzz
For those doing AI + DeFi, Dev jsonhedman won first place in Microsoft's generative AI hackathon, and this individual quickly reached a market cap of $40 million in just a few hours. I remember when I first saw the code, it was still $4 million; if you hesitate even a bit, you will miss the opportunity. Now the market has reached a stage where you must get on board first and research later; many projects that didn't get on board in time can only be replaced with the next one.
(2) sandy
The AI video rendering is also a big milk concept meme that came out yesterday; its FDV peaked at $33 million and now stands at $24 million.
(3) swarms, zailgo, mcs
The top three projects are all led by the same person, and their price movements are synchronized. The FDV of swarms has surged to $200 million; just a week ago it was around $20 million, now it has definitely grown into a small blue chip. Zailgo is also a framework protocol, and its Twitter has also involved abstraction, doubling directly today with an FDV of $64 million now.
As for why not to go for spot trading?
The top project ai16z virtual has too heavy initial chips. Once it launches on Binance, it may complete its exit. I estimate that these projects won't be available for spot trading anytime soon and may choose hot tech projects with $100 million to $200 million FDV, like swarms and alch.
The on-chain AI market will continue, at least relatively safe in January. Everyone must pay attention to risks and cannot blindly go all in due to excitement. The vast majority of on-chain AI projects will ultimately head towards zero; do not hold faith in them. Leading AI projects can be held for a longer time, but aside from that, do not over-fantasize. The funds earned from AI can slowly return to the secondary market to purchase value coins, which is currently the most correct strategy.
AI Agent's old coins have corrected, and today these 4 new coins have surged strongly.
Although the vast majority of AI coins are correcting, note that it is not a dead stop; if there is no correction, even I would be anxious. A decline is actually a good thing. Yesterday, I mentioned that the group sentiment was overly FOMO, which inevitably created a demand for correction. Moreover, ai16z has already launched on the BN contract, marking a temporary peak. Now that it is correcting, it is a good opportunity to accumulate chips.
Let's use the DeFi craze as a metaphor. In the beginning, the market mainly focused on the competition between Swap and lending protocols, which are also the cornerstones of DeFi. Once leading projects like Uniswap and Aave established their foothold, it was time for infrastructure projects like $LINK to shine. The market then entered a stage of various blood-sucking attacks and complex overlay strategies, and later, the track gradually became saturated, leading to the emergence of so-called 'micro-innovations' and even 'pseudo-innovations.'
When it comes to some project issues that require tools or repeated research to understand, it actually indicates that this track is almost at its end. In this process, as long as you keep following the hot bubbles and continuously reinvest to increase your holdings of $Aave, $Uni, and $LINK, then theoretically, when the bull market is about to end, you can capture the largest profits.
Therefore, during this market correction, I have taken profits from several small and medium coins that performed well. Now I am gradually increasing my positions in a few large coins with a market cap over $1 billion through dollar-cost averaging.
At the same time, explore new projects and invest small amounts to seek high returns. Continue to pay attention to opportunities with market caps below $10 million and above $100 million to find the next potential hotspot.
