- Criticism of Current Altcoin Market Conditions
- Skepticism About Solana
- Positive Outlook for Decentralized AI Infrastructure
Andrew Kang, co-founder and general partner at Mechanism Capital, expressed his views on the current state and future of the altcoin market in a recent tweet, questioning long-standing notions about Bitcoin and altcoin market trends.
Criticism of Current Altcoin Market Conditions
Andrew Kang challenged the widespread belief that cryptocurrency market caps, including Ethereum (ETH), should reach new highs with each market cycle. He believes this is no longer the case and that many cryptocurrencies might be on a downward trajectory, akin to a 'euthanasia coaster.' Even if Bitcoin reaches new all-time highs, Kang believes this does not guarantee similar growth for altcoins.
Skepticism About Solana
Kang expressed doubts about Solana, noting that he does not expect this cryptocurrency to reach a new low in this cycle. However, he added that excluding Solana from the total cryptocurrency market cap increases the likelihood of the market cap falling to new lows.
Positive Outlook for Decentralized AI Infrastructure
Kang predicts that the market may bottom out around 2025, with tokens connected to decentralized AI infrastructure driving the next major wave of growth. He argues that AGI (Artificial General Intelligence) will require a powerful and indispensable infrastructure for various tasks, including communication, value transfer, training, computation and inference, energy markets, and data storage.
While Andrew Kang remains unsure about the overall market direction, his forecasts have generated considerable interest in decentralized AI infrastructure as the next possible growth direction.
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