Crypto Market Outlook: AI Bubble, Decline of OG Memes, and BTC Dominance

In the latest Hivemind podcast by Delphi Labs, industry experts delved into the prospects of the crypto market in 2025. Key points include:

Market Observation

• The market has been highly volatile recently, but the fundamentals have not changed.
• Bitcoin remains the best-performing asset, while DeFi and old Meme coins are performing mediocrely.
• The market interest point has not fundamentally shifted.
• Macroeconomic factors and technical adjustments jointly affect the market

AI Bubble

• AI may become the biggest market narrative in 2025
• AGI is expected to be realized in 2025.
• The AI bubble may become one of the largest bubbles in financial history.
• The encryption AI market still has a large amount of potential funds that may enter.
• Market leaders like Virtuals and ai16z lack a solid moat.

The Decline of OG Memes

• AI is essentially a bigger Meme than WIF
• Most of the funds in the crypto market may flow towards AI in 2025.
• The market has grown tired of traditional Memes.
• DOGE may be a good benchmark for evaluating the overall meme coin market.
• Most Meme coins and proxy projects may ultimately fail.

Fundamental Return

• Projects without long-term income support are difficult to sustain.
• Infrastructure projects that can generate real income are receiving more attention.
• Solana applications account for over 50% of the revenue in the crypto market.
• The market is maturing, and investors are starting to pay attention to projects with reasonable fundamentals.

Next Generation L2 and L3

• L2 performed well in 2024, with total locked-in volume doubling.
• It is expected that at least one large financial institution will launch its own L2 by 2025.
• Only three L2s have TPS exceeding Ethereum.
• Optimistic about the development at the application layer, especially related to AI agent projects.

Bitcoin Dominance

• The dominance of Bitcoin has been steadily rising since 2022.
• The traditional concept of "shanzhai coin season" may be outdated.
• It is expected that Bitcoin may still outperform Ethereum in 2025.
• If Bitcoin rises to $125,000-$150,000, BTC dominance may return to 62%-63%.

Bitcoin L2 Feasibility

• Bitcoin L2 may become a dark horse in the market by 2025
• ZK L2 is expected to launch 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% of BTC holders use L2 services, it amounts to a market of 50 billion dollars.

Overall, experts expect that the crypto market will continue to evolve in 2025, with AI, Bitcoin L2, and infrastructure projects likely becoming major growth points, while traditional Meme coins and projects lacking actual revenue may face challenges.