TechFlow reported that crypto hedge fund Galois Capital published an article yesterday analyzing the impact of Twitter algorithm changes on the cryptocurrency market. It pointed out that since the change of Twitter's default algorithm, the narrative formation in the crypto field has become weak.
Galois Capital believes that users are fragmented between the two information flows of "Recommended for You" and "Following", which leads to distraction and makes it difficult to form long-term narratives.
Galois Capital also mentioned that the current market lacks killer applications, which has led to a large number of imitation behaviors, such as the competition between DriftProtocol and Polymarket in the prediction market. Galois Capital believes that this may reflect the lack of innovation in the industry at the application level, but it may also be an unexpected benefit brought about by the change of Twitter algorithm.
Galois Capital also explores the possible reflexive mechanisms between the crypto industry and political attention, and the advantages that short-term narratives may gain in the current environment.
Finally, he 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 quality projects.
