AI Bubble, OG Memes Decline and Bitcoin Dominance

The cryptocurrency market will face significant changes in 2025. AI narratives may become the biggest hotspot, but there are also risks of bubbles. OG Memes coins are gradually losing their appeal, and a return to fundamentals is becoming mainstream in the market. Bitcoin's dominance is likely to continue rising, and the L2 ecosystem is expected to emerge as a dark horse.

AI Bubble

• AI may become the biggest narrative in 2025, with the potential to achieve General Artificial Intelligence (AGI)
• Only a few people in Silicon Valley truly understand the impact of AI; the world will realize this in the coming years.
• The AI bubble is almost unavoidable and may become one of the largest bubbles in financial history.
• Current AI projects lack a long-term moat, and more valuable new projects may emerge in the future.

The Decline of OG Memes

• AI is essentially a bigger Meme than WIF, easier to tell stories and generate excitement.
• Most crypto funds in 2025 may flow into AI rather than traditional Meme coins.
• The market has grown tired of traditional Memes and tends to favor projects that have at least some real value.
• DOGE may be a good benchmark for assessing the overall Meme coin market.

Fundamental Return

• Projects without a long-term income story are difficult to sustain.
• L1/infrastructure projects that can truly generate income are gaining more attention.
• Solana accounts for 56.8% of the revenue in the crypto space, with the potential to surpass ETH.
• The market is maturing, and investors are beginning to pay attention to projects with reasonable fundamentals.

Next Generation L2 and L3

• L2 performed well last year, with a total locked value of ( TVL) increasing from 22 billion to 40 billion.
• Large financial institutions may launch their own L2 before 2025.
• Currently, only 3 L2s have TPS exceeding Ethereum, resulting in a winner-takes-all effect.
• The development potential at the application level is enormous, especially for AI agent-related projects.

Bitcoin's Dominance

• The dominance of BTC has been steadily increasing since 2022, currently at around 58%.
• The traditional "altcoin season" concept may be outdated.
• The dominance of BTC may drop to 62%-63% after 2025.
• Projects with strong fundamentals and a clear narrative may still perform well.

Bitcoin L2 Feasibility

• Bitcoin L2 in 2025 may become a dark horse.
• ZK L2 projects such as Citrea or Alpen Labs are expected to go live on Bitcoin.
• Bitcoin L2 not only provides scalability but also enables programmability.
• Starknet may be a dark horse for Bitcoin L2.
• Even if only 2.5% Bitcoin enters L2, it is equivalent to a market of 50 billion USD.