It’s a good way to summarize yesterday’s crypto-related and non-crypto related actions.
Galaxy Trading, a brokerage firm that specializes in trading stocks and options on the stock market, summarized its actions as follows: “function of broader crypto market movements” Carlos Guzman of GSR said that AI was the dominant narrative.
Basically, DeepSeek — a Chinese AI company — was able to rival OpenAI’s very expensive model for much cheaper on older (and much less expensive) chips, hence the selloff in Nvidia.
Jesse Glass of Decide AI doesn’t expect the cheap GPU story to last, as DeepSeek is still going to need bigger GPUs.
Then, we saw folks scrambling for a new approach, especially with the large AI companies, including OpenAI. Some of these have been valued in multi-billion dollar amounts.
Guzman’s narrative on the crypto front was essentially the same. AI tokens that were part of the recent selloff were overvalued, given their current use cases.
“I do think crypto and AI agents are a real thing, and we’ll eventually see a lot of real use cases of AI agents that use crypto … But, as often happens in crypto, the tech wasn’t quite there … The excitement got a little bit ahead of where the tech was,” He explained.
Galaxy stated that tokens for AI weren’t at their all-time highest prices before the correction. It shows some people aren’t convinced about how these tokens fit in to the industry yet. AI researchers like Glass will be a little sceptical until they can incorporate or emphasize edge computing into their projects instead of simply launching tokens.
“For AI-focused crypto projects to break out of speculative cycles, they must demonstrate clear blockchain-native advantages — whether through cost efficiencies, trustless execution, or new incentive mechanisms. Accessibility also remains a challenge, as memecoin trading is one of the few areas that has broken through mainstream barriers,” Galaxy Trading team explains.
Do you think yesterday’s actions have changed the bullishness around this intersection of AI/crypto? Not at all. Guzman thinks that new development and usage cases will bring back the buzz around tokens.
The current state of AI is actually not too bad, despite all the red. Guzman said to me that the DeepSeek story might be good in the long term.
DeepSeek’s lessons can be replicated and built upon by the AI companies currently operating in the US.
It seems that there is always some silver lining.
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