From Meme to AI: Where Are the New Opportunities in the Crypto Market?

Author: JoshuaDeuk

Translation: Baihua Blockchain

Editor's Note:

As Bitcoin breaks above $110,000 once again, market greed continues to rise—especially reigniting enthusiasm for the alt-season. However, subsequent market volatility has shattered these illusions.

Unlike the panic seen across most altcoins, Bitcoin is steadily moving back toward $110,000, while Ethereum is also showing signs of breakout momentum. So what are the next potential sources of super alpha? Are memes still the premier crypto narrative?

Below is the full analysis from JoshuaDeuk, Trading Head at Mozaik Capital:

This weekend, with more time to reflect, I’d like to share some thoughts on the current market.

I believe the overall directional trend in the crypto market won’t become clear until after September. Given macroeconomic headwinds, summer liquidity constraints, and quarter-end position adjustments, real market dynamics will only begin once participants return from August holidays. Judging from recent activity, most altcoin rallies have been driven by short squeezes. Traders, conditioned by previous rebounds, are chasing momentum—but this time, there are no real long-term holders. Most were already burned in prior cycles. As expected, the vast majority of sharply rising tokens have since experienced equally sharp declines.

Ethereum’s rebound was unexpected, and the most battered sectors—such as AI and meme coins—led the charge. On the other hand, tokens with actual utility, strong fundamentals, or buyback mechanisms demonstrated resilience—not only holding up better during downturns but also recovering faster. Syrup, Hype, and AAVE are excellent examples. SPX, though a meme coin, has a completely different structure. From this, we can draw several key insights:

01 Bitcoin demand is real and enduring

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

The nature of capital supporting BTC today is fundamentally different from previous cycles. This is why large-scale BTC liquidations are unlikely—unless triggered by macro events.

02 Divergence within altcoins will intensify

Capital will eventually flow back into altcoins—but not universally. Only tokens with clear utility and real-world use cases will attract meaningful inflows. This is why I believe Ethereum will outperform Solana. Regulatory clarity, growing DeFi adoption, deflationary mechanics, and staking demand collectively create a powerful flywheel effect. Moreover, because ETH has underperformed expectations for so long, there remains a pool of marginal buyers waiting on the sidelines.

03 Venture-backed tokens face structural risks

Token unlocks will continue to pressure price action. In low-liquidity environments, sustained selling pressure from validators and early investors limits upside potential. This is why I believe overvalued tokens listed on centralized exchanges are poor bets going forward. Tokens in the Cosmos ecosystem, in particular, face persistent sell-side pressure due to their validator reward structure.

04 Memes have structural advantages

In this environment, memes possess structural advantages: no VC unlocks, fair launches, and 100% attention-based. It’s a pure hype mechanism—just like in the first cycle, it works.

But I believe this phase is ending.

The pump.fun token generation event and the launch of Trump coin marked the peak of meme attention. Since then, interest in meme coins has begun to fade. Even during April’s rally, SOL underperformed ETH—if everyone already owns SOL, who will be the marginal buyer when meme momentum fades?

Some meme coins may still perform well, especially those gaining traction beyond Crypto Twitter—on platforms like TikTok or Instagram—driven by charismatic figures such as MURAD. These could still generate asymmetric wealth effects. But the era of “cute dog and cat coins” as alpha is over. Only meme coins with strong narratives and powerful market perception—something people can collectively believe in—have genuine speculative value.

Ironically, growing fatigue and skepticism toward venture-backed tokens have opened the door for fairly launched Web2/3 hybrid projects, which could become the next wave of wealth creation.

Keeta is a prime example. But to capture these opportunities, you need to be active on-chain. When information asymmetry exists, big opportunities always emerge. Once something is widely known, it no longer offers outsized returns.

This is why I’m spending more time closely monitoring on-chain markets. Keeta’s success has sparked a hunt for the “next Keeta,” with capital now chasing similar fair-launch altcoin narratives. Just like that guy Bonk who made an 11-figure fortune trading meme coins—attention directs capital.

05 What comes next

So if meme coins are no longer the opportunity… what’s next?

My view: the convergence of AI and crypto.

If you’ve followed my timeline, you know that most of my positioning this cycle—after early exposure to SOL and venture-backed tokens—has focused on memes and AI.

Just like DeFi Summer, most early AI projects failed after the initial hype. But truly utility-driven projects are quietly building through this bear market.

We’re already seeing some of these emerge on-chain.

As profits from meme coins dry up, attention will naturally shift to new narratives.

AI, with its clear utility, is perfectly positioned to be the next destination.

Many AI x Crypto projects are being fairly launched, echoing the Keeta narrative.

This is why I’ve spent quiet weeks researching and positioning early in this space. There’s no need to rush into full positions now—but I believe if the market sees another strong upward move, this sector will offer the greatest asymmetric opportunities. This concludes my review of current market conditions and future trends.