The combination of AI and cryptocurrency may become the breakthrough path for the altcoin season.

Written by: Joshua Deuk

Translated by: Blockchain in Plain Language

Editor's Note:

As Bitcoin once again breaks through $110,000, the market greed index continues to rise, especially with the enthusiasm for the altcoin season reignited. However, the subsequent market fluctuations have shattered this illusion.

Unlike the panic in the altcoin market, Bitcoin is oscillating closer to $110,000 again, and Ethereum is also showing signs of a breakout. So, what super Alpha opportunities lie ahead? Is MeMe still the super crypto track?

Joshua Deuk, Head of Trading at Mozaik Capital, shares his thoughts on the current market:

This weekend, with more time to reflect, I want to share some thoughts about the market.

I believe the overall directional trend of the cryptocurrency market will not become apparent until after September. Given the macroeconomic headwinds, summer liquidity constraints, and quarterly position adjustments, the real market dynamics will only begin when market participants return after the August holidays. From recent market activities, most altcoin rallies have been driven by short squeezes. Traders, reacting to previous rebounds, chase momentum—but this time there are no real long-term holders. Most have already been battered by the market. As expected, the vast majority of tokens that surged sharply have subsequently experienced equally severe declines.

Ethereum rebounded unexpectedly, while the most battered sectors, such as AI and MeMe coins, led this rebound. On the other hand, tokens with real utility, strong fundamentals, or buyback mechanisms have shown resilience—not only performing more robustly during downturns but also recovering faster. Syrup, Hype, and AAVE are good examples. Although SPX is a MeMe coin, its structure is entirely different. From this, we can extract the following insights:

01 Bitcoin Demand is Real and Persistent

Traditional capital is gradually entering through ETFs and other regulated channels.

The nature of the capital supporting BTC now is completely different from previous cycles. This is why large-scale BTC liquidations are unlikely to occur unless triggered by macro events.

02 Differentiation Within Altcoins Will Intensify

Ultimately, capital will flow back into altcoins—but it will not be comprehensive. Only tokens with clear utility and real use cases are likely to attract this influx of funds. This is why I believe Ethereum will outperform Solana. Regulatory clarity, increasing decentralized finance usage, deflationary structures, and staking demand together create a powerful flywheel effect. Moreover, since ETH has long failed to meet expectations, there are still marginal buyers waiting off-market.

03 Venture Capital-Supported Tokens Face Structural Risks

Token unlocks will continue to exert pressure on price movements. In a liquidity-scarce environment, ongoing selling pressure from validators and early investors limits upside potential. This is why I believe that overvalued tokens listed on centralized exchanges are not a good choice for the future. Tokens in the Cosmos ecosystem, in particular, face ongoing selling pressure due to their validator reward structure.

04 MeMe Has Structural Advantages

In this context, MeMe has structural advantages, with no venture capital unlocks, fair launches, and being 100% attention-based. This is a pure hype mechanism—just like it worked in the first cycle.

But I believe this phase is coming to an end.

The token generation event of Pump.fun and the launch of Trump coin mark the peak of attention for MeMe coins. After that, interest in MeMe coins began to wane. Even during the April rebound, SOL's performance was not as strong as ETH's—if everyone already holds SOL, who will be the marginal buyer when the momentum for MeMe coins fades?

Some MeMe coins may still perform well, especially those that have gained popularity outside of crypto Twitter, such as those propelled by charismatic figures like MURAD on TikTok or Instagram. These may still bring asymmetric wealth effects. But the era of "cute dog and cat coins" as alpha is over. Only those MeMe coins with strong narratives and strong market recognition—things that people can collectively believe in—hold true speculative value.

Ironically, the fatigue and skepticism towards venture capital-supported tokens have opened the door for fairly launched Web2/3 projects, which will become the next wave of wealth generation opportunities.

Keeta is a great example. But to seize these opportunities, you need to be active on-chain. When information asymmetry exists, big opportunities always emerge. Once everyone knows something, it no longer offers returns.

This is why I spend more time closely monitoring the on-chain market. Keeta's success has ignited the desire to find the "next Keeta," and capital is beginning to chase similar fair launch altcoin narratives. Just like that guy from Bonk who made over 10 figures trading MeMe coins—attention drives capital.

05 Next Market Trends

So, if meme coins are no longer where the opportunities lie… what comes next?

My view: the combination of AI and cryptocurrency.

If you've followed my timeline, you know that most of my operations in this cycle—after the early SOL and venture capital-supported tokens—have focused on MeMe coins and AI.

Just like during DeFi summer, most early AI projects failed after the hype. But truly utility-based projects are quietly building during this bear market.

We have already seen some of these projects emerge on-chain.

As the profits from MeMe coins dwindle, attention will naturally shift to new narratives.

AI, with its clear utility, is well-suited to become the next destination.

Many AI x Crypto projects are fair launches, echoing the narrative of Keeta.

This is why I have spent quiet weeks researching and positioning myself in this field ahead of time. There is no need to rush to build a full position now—but I believe that if the market experiences a strong rally again, this field will hold the greatest asymmetric opportunities. The market situation and future trends have been reviewed.

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