According to TechFlow, crypto hedge fund Galois Capital analyzed the impact of Twitter algorithm changes on the cryptocurrency market and pointed out that narrative formation in the crypto field has become weak since Twitter's default algorithm changed.
Galois Capital believes that users are scattered between the two information flows of "Recommended for You" and "Follow", which leads to distraction and makes it difficult to form long-term narratives.
Galois Capital mentioned that the current market lacks killer applications, leading to a large number of imitation behaviors, such as the competition between DriftProtocol and Polymarket in the prediction market field.
Galois Capital explores the reflexive mechanisms between the crypto industry and political attention, and the advantages that short-term narratives may gain in the current environment.
Finally, Galois Capital raised two questions: how to return to better times, and which tokens may perform better if things cannot be changed. Zhou predicted that as dopamine fatigue sets in, the market may see a trend of returning to high-quality projects.