Alt Season or Trap?

Recent market movements on some promising narratives..

Nov 03, 2023

In this 34th edition of the Gems Corner, we will examine the current altcoin movements on Crypto AI narrative and alphas.

Investment success doesn’t come from “buying good things,” but rather from “buying things well. - Howard Marks

If you’re like me you’ve probably been waiting for altcoin season for a while. Well, the past weeks showed some strong signs of pre-bull market and altcoin season. This was characterized by positive price movements, with many coins hitting their all-time highs for the first time.

Without further ado, let’s look at a few narratives that had most of the positive price movements.

Crypto AI Narrative

The Crypto AI narrative has been the strongest performer in the last seven days. Its cumulative Total Value Locked (TVL) exceeded $3B and it had a +7.55%, incredible. Some of the strongest performers are:

Mozaic (MOZ): +502.5%
Vectorspace AI (VXV): +77.1%
MurAll (PAINT): +62.3%
MEVFree (MEVFREE): +58.7%
Vaiot (VAI): +45.4%

The primary catalyst driving these tokens is the much-anticipated OpenAI Dev Day coming up on the 6th of November, 2023. Hoping to see more movements in the coming days.

Layer One

Layer One blockchains weren’t left out in the recent price movements. A couple of L1 tokens have a strong upward movement in token price. Some of these are:

Near Protocol (NEAR): +24.9%
Solana (SOL): +16.8%
Aleph Zero (AZERO): +16.0%
Injective (INJ): +12.1%

There are a couple of catalysts driving these chains, but that of Solana is the ongoing Solana Breakpoint Conference 2023, and the recent airdrop announcements by Jupiter Exchange and Pyth Network.

Decentralized Exchanges (DEX)

The cumulative market cap for decentralized exchanges increased by 11.2% in the last 7 days. After a period of low volume, the DEX narrative is finally showing signs of recovery as the general market rebounds. Here are a few top performers:

Sushi (SUSHI): +93.8%
xSUSHI (XSHUSHI): +88.8%
Osmosis (OSMO): +54.5%
Raydium (RAY): +28.6%
THORchain (RUNE): +23.9%

Other narratives that had significant gains in the last 7 days are AMMs, asset-backed tokens, SocialFi, bridge governance tokens, Yearn ecosystem, to mention a few. Do keep an eye on events and fundamentals during this period, we might see greater price movement in the coming days.