Thought It Ended with Bitcoin ETFs...Are AI Agents Fueling the Crypto Boom Narrative?

▲ Artificial Intelligence (AI), Bitcoin (BTC), Stocks / ChatGPT Generated Image

Amid growing skepticism that the cryptocurrency market's explosive growth has ended after the Bitcoin (BTC) ETF, Altcoin Daily argued that AI agents, tokenization, decentralized derivatives, and privacy demand could create the next bullish narrative.

The cryptocurrency YouTube channel Altcoin Daily stated in a video uploaded on June 1 (local time) that while Bitcoin has become popularized with the launch of ETFs, making it harder to rise as quickly as in the past, the narrative of the cryptocurrency market is not over. The host said, "Those who bought Bitcoin when it was $800 or $8,000 were smart. Now, anyone can buy it." However, he suggested the combination of AI and cryptocurrency as a new axis of demand, stating that AI agents are highly likely to utilize cryptocurrencies to coordinate incentive systems and payment/settlement in economic activities.

The host also saw signs of Bitcoin selling fatigue in on-chain data. He explained, "The supply held by long-term holders who have held Bitcoin for more than 155 days has surged to its highest level since 2023," adding, "In 2023, a bottom was formed as sellers exhausted." The fact that the cryptocurrency market remains in a correction and consolidation phase while stocks, real estate, and gold are at high points was also presented as an opportunity. He argued, "The S&P 500 is heading towards one of its strongest clusters of all-time highs in 75 years, and real estate and gold are also near all-time highs," asserting, "Cryptocurrency is currently one of the best opportunities in the world."

Hyperliquid was mentioned first as an altcoin example. Jeffrey Sprecher, CEO of Intercontinental Exchange, stated at the Bernstein Conference that the trading activity on Hyperliquid, a decentralized cryptocurrency derivatives platform, is greater than that of Nasdaq. He described Hyperliquid's small core team as "very, very smart people." The video explained that Hyperliquid dominates over 70% of the trading volume in the decentralized perpetual futures market and attracts even non-crypto traders by offering 24/7 crude oil derivatives trading, even on weekends.

Another strength of Hyperliquid is its tokenomics, which are easy to explain to Wall Street investors. Bitwise's Head of Research said, "Hyperliquid generates fees from trading activity, and those fees are used to buy back and burn Hyperliquid tokens," adding, "From an investor's perspective, it feels very similar to stock buybacks." The video mentioned that while the average stock buyback rate for S&P 500 companies is around 2%, Hyperliquid's calculated rate can be compared to approximately 5%. This analysis suggests that the structure where cash flow leads to token burning is why Hyperliquid is easy to explain to Wall Street capital.

In the field of tokenization, Ondo Finance was presented as a key example. As of last month, Ondo Global Markets surpassed $1 billion in total assets under deposit and accounted for over 70% of the tokenized equity market. Ondo Finance controls 42% of the entire tokenized real-world asset market, with tokenized U.S. Treasuries and yield-bearing dollar products driving its growth. A representative from the digital assets division of the Depository Trust Clearing Corporation (DTCC) said, "We hold approximately $100 trillion in assets and 1.4 million identification numbers," adding, "Using tokenized assets as collateral allows collateral to be moved at network speed."

In the AI sector, Bittensor (TAO) was mentioned alongside Ethereum (ETH) and Solana (SOL). Barry Silbert of Digital Currency Group said, "Bittensor was launched fairly like Bitcoin, and it is completely decentralized without venture capital investment rounds." He believes that just as Bitcoin attracts miners with $10 billion in annual rewards, Bittensor can provide incentives ranging from $1 billion to $10 billion annually in the future to facilitate AI problem-solving. The video concluded by introducing Silbert's prediction that 5% to 10% of Bitcoin capital could move into privacy coins, along with the development of Bittensor Subnet 28's confidential routing layer, summarizing that the cryptocurrency market's next narrative is expanding around AI, tokenization, and privacy demand.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*