AI Innovation and the Future of Crypto Assets

In early 2025, China's AI model DeepSeek performed excellently in benchmark tests, on par with GPT-4 and Llama 3.1, and even slightly better in some aspects. This groundbreaking achievement used only 2048 NVIDIA H800 GPUs, with training costs of about 5.58 million dollars, which is equivalent to one-tenth of Meta's similar projects. DeepSeek's success showcases China's innovative capabilities in the AI field, breaking through long-standing technological blockades.

The success of DeepSeek has had a profound impact on the Crypto Assets industry. Firstly, Nvidia has been affected, with its demand for AI computing power and advantages of the CUDA architecture being questioned. This may bring opportunities for decentralized computing projects, as personal GPUs may have more application space in the future. Secondly, AI framework-like Crypto Assets projects have suffered heavy losses, highlighting the gap between their high valuations and actual outputs.

The positioning of Crypto Assets in the AI ecosystem needs to be rethought. Possible directions include: using blockchain as a compliance audit layer for AI models to protect the privacy data processed by AI; teaching AI to interact with the virtual world through incentive mechanisms; combining DePin to educate agents on interacting with reality; exploring AI-automated adjustments to token incentive mechanisms, etc.

The Meme coin market has undergone a transition from cultural consensus to pure speculation. The lowering of asset issuance thresholds and the anonymity of blockchain have fueled this trend. However, projects lacking substantial content have shorter lifecycles, and the market is beginning to grow weary of this chaotic state.

The traditional market cycle theory seems to no longer apply. The altcoin market requires a higher level of maturity to support valuations. The surge in the number of tokens reflects the evolution of the blockchain ecosystem from a low-entropy value system to a high-entropy noise system. The market may need a deep adjustment to reshape the project valuation system and listing standards.

Despite the current direction of the Crypto Assets industry being lost, the success of DeepSeek indicates that innovation remains key to overcoming challenges. The Crypto Assets have a favorable policy environment, attention, funding, and infrastructure, and there are likely several altcoin ETFs in the future that could inject new liquidity into the industry. We are in the process of mainstreaming, but we still need to overcome our own limitations. The decline of the meme coin craze may signal the arrival of a turning point for the industry; the future of humanity does not belong solely to AI, and there is still ample development space for Crypto Assets.