Conversation with Delphi Labs: AI Bubble, Bitcoin Dominance, and New Trends

What new trends will the cryptocurrency market present in 2025? The Delphi Labs team recently had an in-depth discussion on the Hivemind podcast, exploring hot topics such as the evolution of AI narratives, the Bitcoin L2 ecosystem, and the return of infrastructure value. Here are the key points of the conversation:

Market Observation

• Recently, the market has been highly volatile, but it has not changed the fundamentals. Bitcoin remains the best-performing asset, while DeFi and old Meme coins have performed poorly.
• Trump's election may promote crypto-friendly policies, but there is also uncertainty.
• The market is currently in the stage of digesting previous gains, and future trends will depend on actual policies.

AI Bubble

• AI may become the biggest narrative of 2025, or one of the largest bubbles in history.
• Current AI projects lack a long-term moat, and there will be capital rotation in the future.
• The overall AI market outlook is positive, but some token valuations are too high and will return to rationality in the future.

The Decline of OG Memes

• AI narratives are replacing Meme coins, becoming a new investment hotspot.
• Most OG Meme coins may have already peaked and find it difficult to reach new highs.
• DOGE, as a benchmark in the Meme coin market, still has room for growth.

Fundamental Return

• The market is maturing and starting to focus on projects supported by real business.
• Solana application revenue accounts for over 50%, showing a strong growth momentum.
• Infrastructure tokens and tokens with high FDV and low circulation face valuation regression.

Next Generation L2 and L3

• L2 performed well in 2024, with total locked value doubling to $40 billion.
• It is expected that large financial institutions will launch their own L2 in 2025.
• Application-specific sorting may become a new trend, but it is necessary to balance the distribution of benefits.

Bitcoin Dominance

• Bitcoin's dominance has risen from about 40% in 2022 to the current 58%.
• It is expected that Bitcoin may still outperform Ethereum in 2025.
• The traditional concept of "shanzhai coin season" may have become outdated.

Bitcoin L2 Feasibility

• Bitcoin L2 may become a dark horse in 2025, bringing scalability and programmability.
• OP_CAT is expected to enable trustless bridging.
• Even a small adoption can bring a huge market.

Overall, the crypto market in 2025 may exhibit trends such as an AI bubble, the rise of Bitcoin L2, and a return to fundamentals. Traditional Meme coins and some overvalued projects may face adjustments, while projects with real business support will attract more attention.