Recently, market funds have clearly shifted from pure L1 main chains to niche narratives. Everyone is talking about moving away from obsessing over underlying public chains and focusing on sectors with real use cases and stories, which is more reliable.

AI infrastructure: TAO - Bittensor has been performing well recently, with prices between $290-$300, up 4-5% in 24 hours, over 10% in 7 days. It is a decentralized machine learning network that combines AI computing power with blockchain incentives quite effectively. ICP is also seeing a flow of funds back in.
Privacy coins: ZEC - Zcash recently surged over 28% in a single day, with prices exceeding $270. This is mainly because the privacy narrative has been revived. ZEC’s zk-proof solutions are more practical, easier for institutions to accept, and supported by Grayscale funds. On-chain activity has also increased.
Meme coins: DOGE remains steady, with WIF rising about 24%. PENGU due to its IP and community momentum has been active in May. Meme coins are volatile, but during fund rotations, they always have a place.
Hyperliquid’s HIP-4: Launched its mainnet around May 4th, a permissionless prediction market. On the first day, it traded 6.05 million contracts, capturing 0.7% market share, directly competing with Polymarket. Zero fees, fully on-chain execution. Anyone staking 1 million HYPE can create a market, and the HYPE token has also risen accordingly.
Overall, it’s not a broad market rally but a rotation of funds within sectors with clear stories and short-term catalysts. AI and prediction markets are more long-term, while privacy and meme tokens are more sentiment-driven. The atmosphere is more positive than last week, but caution is still needed with the pace. Market changes are fast, do your own research.
Not investment advice.