After experiencing a period of stagnation, Bitcoin's altcoins have also continuously adjusted, leading many people to feel confused. There are widespread concerns about whether Bitcoin will fall below $90,000 and whether altcoins will further hit new lows.
This emotion actually lacks substantive basis; it is more of an emotional response, belonging to 'emotional prediction'. This anxiety often stems from an excessive interpretation of market dynamics, especially for some novice investors, who often experience what is called 'little white anxiety'.
These investors tend to linger in the mode of the last cycle, as the market trends from April to September 2024 have shown similar situations. However, as we enter 2025, the market environment has changed. If investors continue to judge based on old thinking patterns, they may miss new investment opportunities.
In the past two days, secondary altcoins have been heavily drained by on-chain AI, and there is basically no market activity to speak of; this situation may last until February. Yesterday, various golden dog AIs and AI framework-like swarms were extremely FOMO. After moonshot went live yesterday, the 100 million FDV directly doubled the price, further driving up ALCH and others. Binance launched perpetual contracts for ai16z, zerebro, and griffain, and the market instantly dropped. As mentioned before, many on-chain projects often drop in the first wave of going live, and if it’s spot, there’s still something to play with!
Recent focus can be appropriately tilted towards on-chain; the profit effect on-chain is quite good recently, and on-chain golden dogs continue to emerge.
(1) buzz
Working on AI+DeFi, Dev jsonhedman won first place in the Microsoft Generative AI Hackathon. This project quickly reached a market cap of 40 million within hours. I remember when I first saw the code, it was only 4 million; if you’re slow, you really miss the bus. Now the market has returned to a phase where you get on the bus first and study later. Many projects did not get on the bus at the first opportunity and can only wait for the next one.
(2) sandy
Making AI video rendering is also a big milk concept meme; it came out yesterday, and the FDV peaked at 33 million, now at 24 million.
(3) swarms, zailgo, mcs
The top three projects are all led by the same person, with the same rise and fall, competing with each other. The FDV of swarms has already surged to 200 million; just a week ago, it was only around 20 million, and now it has definitely grown into a small blue chip. Zailgo is also a framework protocol, and it even has an abstract on Twitter, directly doubling today, with an FDV now at 64 million.
As for why not buy spot?
The leading project ai16z virtual has too heavy front-row chips, and once it goes live on Binance, it may complete the unloading. I estimate that these projects won't be available on the spot for a while and may choose hot tech projects with a FDV of 100-200 million, such as swarms and alch.
The on-chain AI market will continue, at least relatively safely in January. Everyone must pay attention to risks; do not blindly go all-in out of excitement. The vast majority of on-chain AI projects will ultimately head towards zero, so don’t hold any beliefs in them. The leading AI projects can be held for a longer time, but beyond that, don’t over-fantasize. The funds earned from AI can slowly return to the secondary market to purchase valuable coins, which is currently the most correct strategy.
AI Agent old coins are correcting, and today these four new coins are rising strongly.
Although the vast majority of AI coins are in correction, be aware that it’s not a dead stop. If there’s no correction, even I would panic; a decline is actually a good thing. Yesterday, I mentioned that the collective emotion was too FOMO, and there would inevitably be a demand for correction. Moreover, ai16z has already launched the BN contract yesterday, marking a phase high point. Now, the correction is a good opportunity to accumulate chips.
To use the DeFi boom as a metaphor, in the beginning, the market mainly focused on the competition between Swap and lending protocols, which are also considered the cornerstones of DeFi. Once leading projects like Uniswap and Aave established themselves, it was time for infrastructure projects like $LINK to shine. Later, the market entered a phase of various blood-sucking attacks and complex layered gameplay, and eventually, the track gradually saturated, leading to the emergence of some so-called 'micro-innovations' or even 'pseudo-innovations.'
When it reaches the point where some project issues can only be understood through tools or repeated research, it actually means that this track is almost coming to an end. During this process, as long as you keep up with the hot bubbles and continuously increase the quantity of $Aave, $Uni, and $LINK, theoretically, when the bull market approaches its end, you can capture the largest profits.
So, during this market correction, I have already taken profits on a significant portion of some small and medium coins that performed well. Now, I am slowly increasing my positions in several large coins with a market cap exceeding 1 billion through regular investments.
At the same time, explore new projects and aim for high returns with low costs. Continue to pay attention to opportunities with a market cap below 10 million and above 100 million, looking for potential next hotspots.
Finally, let's see if BIO can be bought after it goes live?
The total issuance of BIO is 3.32 billion, with a current valuation of $219 million. Based on estimates, if the price is below $0.08, it is a relatively safe entry point. In the current bull market where many new coins are launched, many new coins rise within 1-2 days, followed by non-stop dumping. Before launching, everything is an unknown; I advise everyone to be cautious when entering, observe the price during the collection auction, and use the specific launch price as a reference!