Grayscale Defies 2025 Slowdown—Predicts Crypto’s Next Big Surge

Grayscale just dropped a bullish bombshell: crypto’s 2025 slump won’t last. The asset manager sees another rally brewing—because when has this market ever followed logic?

Key takeaways:

- Institutional players still betting big on digital assets

- Current slowdown called a ’recalibration’ (Wall Street speak for ’fire sale’)

- Market cycles still trump fundamentals—for now

One analyst quipped: ’If past performance guaranteed future results, we’d all be retired on Terra Luna profits.’ The crypto rollercoaster rolls on.

In brief

• Crypto-AI capitalization jumped from $4.5 billion to $20 billion in two years.
• 2025 performances remain mixed with TAO (+2%) and ElizaOS (-80%).
• Bittensor is preparing its first halving, a key anticipated event.
• Distributed training emerges as a new technological frontier.

Grayscale releases explosive predictions on AI cryptos

Grayscale Research published a detailed analysis this week revealing the scale of the crypto-AI sector transformation. Between 2023 and today, investors have witnessed a fivefold increase in the total value of this emerging market.

However, 2025 tells a different story. The slowdown is noticeable: TAO, Bittensor’s flagship token, shows a modest gain of 2%. In contrast, ElizaOS is going through a difficult period with a staggering drop of 80%, illustrating the characteristic volatility of this nascent sector.

This mixed performance does not discourage Grayscale analysts. They see it rather as a natural consolidation after the initial euphoria. The market now seems to favor projects with solid fundamentals over pure speculation.

The TAO upgrade, launched last February, marks a major turning point for the Bittensor ecosystem. This technical innovation has made subnets investable for the first time, opening new growth prospects. A concrete result: more than 7% of circulating TAO is now allocated to these specialized subnets.

Promising catalysts for a new phase of expansion

Beyond price performances, technological evolution fascinates experts. Distributed training is today one of the most promising innovations in the crypto-AI sector.

Prime Intellect recently demonstrated the viability of this approach by successfully training models exceeding 30 billion parameters. This technical feat uses GPUs distributed around the globe, proving that a decentralized infrastructure can rival centralized tech giants.

“On a large scale, we believe these types of protocols could have a substantial impact on the AI landscape“, emphasizes the Grayscale report. The stakes are significant: harnessing the 30% of unused computing capacity in global data centers could revolutionize the AI economy.

This transformation comes with concrete investment opportunities. Gensyn and Nous Research, who have just raised $50 million in Series A, are among the protocols best positioned to capitalize on this trend.

The Grass network perfectly illustrates this new economy by generating tens of millions of dollars annually through selling web data to AI laboratories.

In summary, the crypto-AI ecosystem is going through a crucial maturation phase where technology takes precedence over speculation. The upcoming Bittensor halving and the rise of distributed training could well trigger the next wave of mass adoption.

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