The AI sector has entered a calm period again, how should we play next? Shiguang has summarized a few suggestions for your reference:

1. Although yesterday $swarms broke through a market value of 400 million, pushing the entire sector to a new high, this excitement period will not last long. A new round of survival of the fittest has already begun, and many newly created AI concept projects have started to retrace significantly. Most projects that ride the trend will likely be washed out.

2. From AI+meme to DeSic, from AIAgent to the safe combination of TEE+AI, to the current anti-ai16z $swarms framework, as the number of projects continues to increase, the overall market share of the AI sector is steadily growing. The market cap ceiling of leading projects is continuously breaking through, but the market cap ceiling of new non-leading projects is being compressed.

3. Currently, without the drive of a new round of obvious hot effects, the pattern of playing new projects will gradually shrink. Industry competition has formed internal competition, and it is advisable to try new concepts and new technology updates from the two major directions I mentioned earlier. Copy-pasting new projects without innovation will no longer easily gain market recognition.

4. During the market retracement phase, to ensure more stable funding risks, positions should be placed in familiar old projects that have survived several rounds. Ideally, the market cap should be at least in the tens of millions or be leading in niche segments, such as $SPORE, $METAV, $swarms, etc. Additionally, the project $WORM, which I know best, has very clear fluctuations between 20 million and 40 million market cap. These projects have relatively lower zero-risk compared to new projects, and as long as there is a new round of hot effects, an increase is inevitable.

5. Never try to challenge the coin circle curse. The moment Sun Ge tweeted ALL IN AI, we should have realized that the market was likely to undergo a change. All we can say is that we hope this marketing master can't stir up any waves in front of absolute technical strength.