Alpha Opportunities in Narrative Rotation: Analyzing Primary Market Financing Hotspots and AI Sector IPO Strategies

As of February 27, 2026, the crypto market is experiencing a profound shift in primary market narratives. The once-popular “Big Project Week”—featuring intensive large-scale protocol financings and token generation events—is waning, replaced by a new wave of capital deployment centered around artificial intelligence. This change reflects not only a shift in hot topics but also an adjustment in industry fundamentals: valuations for purely infrastructure projects are becoming more cautious, while projects in AI that address real-world problems and have technological barriers are showing strong investment interest.

Based on Gate market data and publicly disclosed funding information, current primary market capital flows exhibit a clear trend of “shifting from virtual to real assets.” Capital is no longer blindly chasing grand narratives but is focusing more on AI agents, graph-model integration, embodied intelligence, and other niche areas capable of generating direct application value or capturing real revenue.

Background and Timeline of the Rise of AI Narratives

Looking back over the past six months, the evolution of primary market enthusiasm is quite clear.

From late 2025 to early 2026, the market remained in the inertia of “Big Project Week.” During this period, multiple multi-hundred-million-dollar infrastructure financings took place, with high expectations for Layer 1, Layer 2, and cross-chain protocols. However, as some existing projects’ tokens underperformed post-generation—sometimes even showing market cap inversions—the valuation bubble in the primary market began to be scrutinized.

In January 2026, a turning point emerged. The Hong Kong stock market first ignited enthusiasm for AI assets, with companies like Biren Technology, Zhipu, and MiniMax going public, each raising over HKD 5 billion, attracting top-tier institutional investors including sovereign funds and industry capital. This enthusiasm quickly spread to the crypto primary market.

Since February, AI narratives have heated up across the board. On one hand, prediction market platforms like Polymarket have seen trading volumes exceeding $100 million for three consecutive weeks, thanks to their integration with AI agents, becoming new on-chain traffic hubs. On the other hand, funding rounds in embodied intelligence, AI agent infrastructure, and related fields have been frequently announced. For example, Critical Point (AGILINK), focusing on embodied intelligent dexterous hands, completed a multi-crore A-round financing, and Weiwei Technology raised over 100 million yuan in an A+ round. Nvidia and Circle’s upcoming earnings reports are also viewed by the market as key indicators of the resonance between AI and crypto assets.

Data and Structural Analysis: Funding Flows and Market Changes

From a capital perspective, the structural changes in the primary market are already quite evident.

Decline of Native Crypto Projects

Data shows that over the past four years, the number of early-stage funding rounds—representing fresh industry blood—has decreased by 63.9%. The decline is especially pronounced in L1, L2, and DeFi native projects. Although some existing projects continue token generation, most are “old projects” funded 1-3 years ago, with limited innovation drive.

AI Sector’s Capital Attractiveness

In stark contrast, AI-related projects are becoming the focus of capital chasing. For example, in China’s domestic primary market from February 9 to 23, 2026, ten financings in the tech and manufacturing sectors raised approximately 1.265 billion RMB, with embodied intelligence and high-end manufacturing leading the way. Notably, Xinghai Tu completed a 1 billion yuan Series B funding, totaling nearly 3 billion yuan in funding, demonstrating strong investor confidence in the AI and robotics integration sector.

External Assets and Prediction Markets as New Targets

As native assets become scarce, the industry is turning outward for solutions. Prediction markets like Polymarket, which can convert external uncertainties into tradable assets, are highly popular, with over 10,000 active trading addresses weekly. Additionally, tokenization of traditional assets (stocks, precious metals) is introducing new volatility and narratives into the crypto space.

Public Opinion and Disputes: Consensus and Controversies

Current market attitudes toward AI narratives are not monolithic but show clear layers of opinion.

Mainstream optimism holds that the combination of AI agents and crypto infrastructure is ushering in a new era of “machine-to-machine payments.” With tools like Polymarket CLI, AI agents can autonomously query markets and execute trades within 200 milliseconds—speed and efficiency beyond human reach. Supporters see 2026 as the “commercialization realization period” for AI industries, believing projects with genuine revenue potential will break out independently.

Cautious observers point out that valuations of AI projects in the primary market are already high. Looking at Hong Kong-listed AI stocks, despite Haizhi Technology’s 242% surge on debut, most companies are still in strategic losses, with unproven profitability. Some investors worry that the crypto AI sector may follow DeFi’s path—after massive funding, narratives peak, and tokens face selling pressure upon listing.

The core debate centers on whether the current AI narrative is a long-term technological revolution or a new concept fabricated by capital amid native asset scarcity. This disagreement itself fuels market dynamics.

Verifying Narrative Authenticity: From Concept Hype to Value Validation

Assessing the authenticity of this AI narrative requires distinguishing short-term hype from long-term value.

In the short term, some projects are driven by concept hype. Certain tokens labeled “AI” have attracted attention solely based on the tag, with unclear technical routes or commercialization prospects. For example, tokens like KITE saw trading volume spike, but future token unlocks could create supply pressures.

Long-term, projects with technological barriers and real application scenarios are beginning to stand out. Take graph-model integration: Haizhi Technology leverages knowledge graphs and large models to reduce hallucination issues, achieving commercialization in fraud detection and intelligent operations. This “technological breakthrough → scenario validation → revenue growth” path is key to assessing narrative authenticity.

Similarly, in AI agents, platforms like LuckyLobster have achieved over $10,704 in early testing with a win rate of 78.6%, providing initial support for the narrative with real data.

Industry Impact: Reshaping Asset Supply and Trading Logic

The rise of AI narratives is exerting multiple influences on the crypto industry.

First, it is restructuring the asset supply in the primary market. The traditional “token issuance—listing—exit” model is being replaced by more complex business models. AI projects often require longer R&D cycles and deeper integration with industry resources, demanding higher professional capabilities from investors.

Second, it is fostering new trading paradigms. The entry of AI agents is changing the microstructure of prediction markets and on-chain trading. Algorithm-driven decision-making, millisecond execution speeds, and emotionless rational operations may become standard, making market participants not only human but also algorithmic.

Third, it accelerates cross-market linkage. The combination of traditional asset tokenization and AI narratives enhances the correlation between crypto markets and macroeconomic factors. External events like Nvidia’s earnings, Federal Reserve policies, and geopolitical developments are transmitted more rapidly onto the chain via prediction markets and related channels.

Multi-Scenario Evolution Projections

Based on current market structure, the future evolution of the AI narrative in the primary market may follow these paths: