Currently, there isn't much to expect from the market. At this stage, it's not about narratives; it's more about watching the main players showcase their abilities and following major entities, such as operating alongside Binance Alpha.
So in this market outlook, I mainly want to share some things I've seen and thought about recently.
1. The arbitrage space on-chain will gradually be weakened with the rise of AI Agents.
The main places for speculation still revolve around DeFAI-related tickers. The most crucial development we need to focus on right now is the EIP-7702 brought by the Ethereum Pectra upgrade. The narrative it involves is DeFAI. In simple terms, the new API built on EIP-7702 allows users to execute complex on-chain strategies without writing smart contracts, which is beneficial for DeFi Agents.
This could be a potential narrative, but whether it can be speculated upon remains to be seen.
My personal approach is to list all DeFAI projects from the Ethereum ecosystem (including BSC, Layer2) in my Watchlist to observe their current price changes.
Another AI narrative is MCP, but currently, nothing particularly impressive has emerged; basically, there's been one standout project, and the project teams have come to realize this and started to join in.
2. Every major breakthrough in AI comes not from new algorithms, but from unlocking new data sources. Each significant advancement in AI is backed by the large-scale use of a completely new training data source (this perspective is someone else's, but I strongly agree with it).
From this angle, the future directions are "embodied intelligence's sensor data capture" and "large-scale training with video data." Although the crypto market isn't currently speculating on embodied intelligence narratives, I believe that narratives related to physical world sensors and data have the potential for explosive growth in the future. Essentially, this is DePAI (DePin + AI). The narrative related to AI + video will have to wait until a significant event occurs in Web2.
Narratives are not isolated; they are interconnected. Narratives must be layered and progressive (for example, stablecoins + RWA + PayFi).
Additionally, I previously saw an article discussing the differences between AI Agents, Workflows, and MCPs, which was very well articulated. I'll find an opportunity to share that with everyone.
3. While Bitcoin may not directly challenge the dominance of the US dollar, in the context of globalization fragmentation caused by tariffs, Bitcoin could become an alternative due to enhanced liquidity, institutional participation, and improved market efficiency.
From the current environment, it's not too difficult for MicroStrategy to raise funds, and there aren't any major risks in the short term.
In the long run, dollar-cost averaging into $BTC is definitely the optimal solution for market participants.
