BTC continues to decline; in my view, this is actually a good thing. It would be best if it stays like this until Trump takes office, so there will be room for growth afterward.
ETH's performance in the past two days no longer needs a boost, and it is gradually strengthening. Even if BTC may have further aftershocks, the US-selected altcoins led by Ethereum will still take the lead in January. Hold onto the recent altcoins you have entered.
In the ETH ecosystem, Pepe, Puffer, and AAVE have also seen significant buying interest, and their trends are very promising. Especially Puffer, which rose another 10% today.
Each time there is a halving, the first year Q1 is a moment of ETH explosion; in 2017, the rise was 518%, and in 2021, it was 160%.
There is also a major benefit from the ETH upgrade in March, and ETH usually starts to rise two months before the upgrade.
The on-chain market is basically running independently, with almost no correlation to drops.
Over the weekend, the TEE concept was driven up, and currently, there are no other hotspots in the market. Trading volume has decreased significantly, and it still feels like there will continue to be speculation on the leading tokens $PHA, $ai16z, $IO, and $SCRT.
Market hotspots:
1. The AI sector is surging: AI16Z, ARC, Zebro (SOL chain), Virtual, AIXBT, Luna (Base chain), Vapor (Hype chain), etc. are all rising significantly. AI16Z has released a white paper, creating a dual oligopoly competition with Virtual. After a significant rise, Vapor may be reaching its peak.
2. Meme coins are rising: SPX, Giga, Would, and other strong coins continue to rise. Would is a meme associated with Musk, and its market capitalization has surged.
3. On-chain meme coins: Tsotchke is surging, and there is speculation on quantum computing DESCI on-chain.
4. The DeFi sector is weakening: The US has introduced a new DeFi broker legislation that strengthens regulations, requiring KYC and tax payment.
Focus on two directions to ensure you don't miss the hot projects in the AI field!
It is said that this bull market lacks innovative narratives, but in fact, AI is the most innovative narrative and also the most sustainable story. Whether in the US stock market or the crypto space, 2025 will definitely be a bull market for AI concepts.
When a technology develops to the point where many old projects have to transform and integrate, that technology has already gained market recognition, and all projects combined with that technology are considered secondary innovations. The current AI track is no longer an independent sector as before, but rather a collective term that continuously integrates with other application technology tracks.
If you don't want to miss the hotspot profit effect of the bull market AI narrative, the following two directions need to be closely monitored.
Horizontal development (application innovation): The best representation of the combination of AI technology and WEB3 is applications, as serving all WEB3 users is where its value lies. In the process of horizontal development, AI+MEME, AI Agent auto-tweeting, AI digital life science Desci, AI+DEFI, and AI data have continuously emerged as sub-tracks. All of these belong to the development of applications combined with AI, and in the future, there will be more traditional applications integrated with AI. This field has unlimited innovative potential, and we need to continuously explore projects that combine AI with new applications to identify the best innovative targets.
Project selection risk: The popularity of a specific sub-track may also be accompanied by many mixed projects. Projects without technology may take advantage of the hype to issue tokens and harvest profits. One must understand how to filter through them; if it's truly unclear, wait for the second surge and choose the leading projects in the track.
Vertical development (technological innovation): The biggest difference in the application of AI technology in the WEB3 field compared to the WEB2 field is decentralization. Besides needing to update applications, technological development requires more updates. Just like the current combination of TEE and AI, the ultimate goal is to enable AI to achieve complete autonomy and prevent human intervention, which is just an update and not the final version. In terms of technology, AI still has a lot of room for improvement before achieving complete decentralization and autonomy. We just need to focus on the first experimental subjects that continuously update technology to achieve this goal.
Project selection risk: The current degree of decentralization of AI technology in the WEB3 field is not high. Just like this time's AIPool presale, most players participate based on trust in the AI16Z team's endorsement. As for whether the execution program of Ai Pool is open-source, if there are logical bugs in the code, whether the code has been modified during the process, and how the remote authentication feedback results of the TEE process are, no one pays attention to these. Of course, retail investors find it difficult to distinguish on the technical side. To reduce risks, the best approach is to trust and choose large companies.
TEE+AI main project relationship diagram
However, news broke yesterday about a photo of the A16Z boss and Mr. Sun.
Mr. Sun has started to take the stage, indicating that the AI agent market is somewhat overheated, and there is a short-term need for a pullback.
You can take back the principal first and leave the profits to run.
Grayscale Research updates Q1 2025 TOP 20 assets to watch.
New additions include HYPE, ENA, VIRTUAL, JUP, JTO, and GRASS.
Key focus on three core areas:
— The potential impact of the US election and its regulation on the industry, especially in areas like DeFi and staking.
— Breakthroughs in decentralized AI technology and applications of AI agents.
— Growth of the Solana ecosystem.
Attached TOP20 tokens:
1-5: BTC ETH SOL LINK SUI
6-10: UNI HYPE AAVE TAO ENA
11-15: OP VIRTUAL LDO HNT AR
16-20: JUP AERO AKT JTO GRASS
The removed tokens are NEAR, STX, MKR, CELO, UMA, and TON.
The meme coins ACT, Neiro, and Pnut have all started to reverse and rise today.
These three coins WINTERMUTE are the largest holders and have started to market make and pump. After a significant drop, the rebound will be very strong. The strongest rebound is from Squirrel, followed by ACT, and the small dog Neiro is slightly behind; it may be due to its relative stability in the previous days.
$PNUT rose initially because a large holder directly purchased 1% of the circulating supply, causing the entire market to trade $PNUT. I also notified everyone in the short message immediately.
Currently at a pressure position; if it breaks through, it may touch the 0.77 position.
