The AI industry is catching up with the MEME industry
AI is red and MEME is orange.
AI is still 1/3 of MEME in the following cases:
1. AI has practical uses
2. AI has fundamentals to support its value
3. More projects are building and releasing more powerful AI protocols
It is pretty certain that within a few weeks to a month, the market value of the entire AI industry will increase by 2 times.
However, to maximize your gains, you need to pick outperforming tokens in outperforming sectors
The largest AI sector merger in history
The Super Artificial Intelligence Alliance announced that FETS, AGIX and OCEAN are expected to merge into $ASI in May. It is scheduled to be launched on May 24. The total value of the merger is 7.5 billion US dollars.
Merger exchange rates:
$FET: asi=1:1
$AGIX: asi=0.4333:1
$OCEAN: sai=0.4332:1
This will be the largest AI sector merger in history. $ASI could become the leader of the AI sector, with greater narrative and hype potential, especially as AI热度 continues to rise this year.
Although the entire AI field is optimistic, rotation is inevitable. In the medium to short term, attention will shift from $ASI ($FET + $AGIX + $OCEAN) to other major AI projects such as $RNDR and $AR.
The main focus is on the five tokens I mentioned. Internally, we believe the $ASI merger might shift attention toward $RNDR and $AR.
1) $ASI valuation
If you've read the ASI vision paper, you know their goal is to build superintelligence (a goal OpenAI has not yet achieved).
The foundation initiated this merger and decided the FDV would be the sum of the three tokens based on their average price over the past 15 days.
The key point is
Its valuation will rank second in FDV (first is $TAO), and it will be the largest coin in MC terms (matching $ASI supply after $FET's 1.4 billion minting).
Based on reverse calculation, we estimate $ASI's MC to be around $4–4.2 billion (6.9 billion FDV).
2) Tokenomics
- ✅ $FET is close to fully diluted
- ❌ $AGIX proposal to sell 100 million $AGIX to buy GPUs
- ❌ $OCEAN: 700 million $OCEAN allocated for rewards (30 million already outflowed)
Both protocols are shortening the pre-vesting period before $ASI's launch.
My view on merging $FET, $AGIX, and $OCEAN into $ASI:
Assuming $FET is extremely powerful with strong potential and development capabilities, they can merge with two other projects while still retaining the $FET name. Name and token symbol are a brand, something that has already established its reputation, especially when exchanging with $FET; it would be very difficult to switch to $ASI. This is what worries me the most.
Secondly, after the merger, $ASI's capital will expand. I'm not sure if it will still maintain enough appeal or generate fear among investors.
Additionally, this merger is quite bearish for $FET holders, especially since $ASI will be diluted in the future—something previous $FET holders didn't have to worry about.
3) What will big funds buy?
Large funds like VanEck have a fiduciary duty to protect capital. Therefore, they naturally trade conservatively—while also seeking visibility in volatile markets.
The best solution is to pick a top 1-5 MC project in a specific industry.
4) Bullish on $AR and $RNDR
Comparing the MC/FDV of $AR and $RNDR with $ASI, the total is approximately $6.7 billion (8.3 billion FDV), mainly due to their circulating supplies of 100% and 72% respectively.
When comparing these two FDVs, they have different fundamentals and roles.
1. $RNDR is the market leader and a simple, safe choice in fund portfolios.
$RNDR is the backbone project in AI.
NVIDIA's value comes from the demand for GPU capabilities. The same concept applies to cryptocurrencies, and $RNDR is the most mature among all competitors in the market.
Similar to L1 ⇔ Dapps, AI protocols require GPU power to support projects.
They are also among the few Web3 projects speaking on the NVIDIA team—imagine the global recognition they could gain from the Web2 world.
2. AR - AO - the new AI L1
samecwilliams announced AO on February 13, marking a paradigm shift for $AR—from a storage layer to a supercomputer supporting infrastructure L1. We internally believe the $2.5 billion MC/FDV mispricing of $AR won't last.
There is also speculation in the market that $AO might airdrop to $AR holders (but not $FLT ⇔ $FIL)
Regardless, AO is fundamentally a strong L1 with solid fundamentals and is still in its early stage.
Additionally, AO's launch has not yet received widespread attention—but the team is actively working on expanding the AO ecosystem.
We are only in week 3 of the 10-week incubation program at dedicated aoTheVentures.
The development of the AO ecosystem is just a matter of time. Several protocols have already been launched, including padolabs, ar_swap, and Permaswap, and they also have a small MEME token.
Conclusion
Not necessarily bearish on $ASI, but we believe rotation is inevitable. If capital flows into $AR and $RNDR, we believe these two tokens still have significant upside potential in the future.