
The cryptocurrency landscape evolves rapidly, often introducing entirely new sectors with real disruptive potential. Decentralized Finance (DeFi) was a clear example of this in 2020. In a recent Analyst Altnote, Sarson Funds’ Analyst, Evan LaMontagne explores another emerging category that’s continuing to gain serious momentum: Decentralized Artificial Intelligence (DeAI). Early indicators suggest DeAI is tracking similarly to the early growth of DeFi in the last market cycle. Sarson Funds’ new strategy, built specifically around DeAI, is positioned to capture the types of market activity discussed in this article.
Learning from the Past: DeFi’s Explosive Growth
As highlighted in the accompanying video, the rise of leading DeFi projects in 2020 and 2021 offers a compelling blueprint for how the DeAI market could unfold. This includes both price movement and the changing level of investor interest. Evan highlights examples like Aave (AAVE), Uniswap (UNI), Yearn.Finance (YFI), and Synthetix (SNX). These projects experienced sharp early growth during key events surrounding the “DeFi Summer” of 2020, followed by significant correction and accumulation phases. That period of drawdown created the conditions for major expansion, with many projects posting gains of more than 1,000 percent as the sector matured and delivered on its promises in 2021. These outcomes helped cement DeFi as a lasting category within the broader crypto landscape.
The key takeaway is that early volatility in breakthrough sectors often presents meaningful buying opportunities, especially before broader adoption and rising valuations take hold.
The DeAI Opportunity: A Familiar Pattern Emerges
Sarson Funds see a similar narrative unfolding in the Decentralized AI space. The video highlights several key holdings and closely watched names within our DeAI fund that appear to be following the same early-stage pattern observed in early DeFi projects:
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- Auki (AUKI): A first mover in virtual AI networks and Robotics.
- Virtuals (VIRTUAL): Protocol for deploying AI agents across multiple networks.
- REI Network (REI): A research initiative focused on bringing AI functionality on-chain.
- AI Rig Complex (ARC): A flexible agent framework built in Rust for the Solana ecosystem.
- AIXBT by Virtuals (AIXBT): A widely used blockchain-integrated AI analyst agent active on X (formerly Twitter).
These projects, along with others in the fund, have seen initial spikes in interest followed by retracements that closely mirror what early DeFi leaders experienced. As Evan notes, this current phase may represent a highly undervalued window for strategic accumulation. As DeAI platforms continue to refine their technology, expand adoption, and deliver utility that is distinct from centralized AI providers, we believe they could follow a growth curve similar to that of DeFi. That progression may take time to unfold, potentially extending into 2025, 2026, and beyond.
Why Invest with Sarson Funds’ Decentralized AI Strategy?
Navigating emerging crypto sectors requires dedicated research, real-time trend monitoring, and a deep understanding of how these markets behave. The Sarson Funds Decentralized AI Strategy is built on our expertise of blockchain technology and market cycles, allowing us to identify undervalued opportunities within the decentralized AI landscape. Our research process focused on core fundamentals, including technology, use cases, and tokenomics, to construct a portfolio designed to capture meaningful upside in this rapidly evolving sector.
The analysis shared in our video offers just a glimpse of the diligence behind our investment approach. By focusing on projects with strong utility and market potential, we aim to position our investors to benefit from the same types of structural tailwinds that fueled previous waves of innovation in crypto.
Seize the DeAI Future
Decentralized AI stands at the intersection of two transformative technologies. If historical crypto cycles are any guide, the current phase of this market may offer a compelling entry point for forward-thinking investors. Along with the opportunities outlined above, our DeAI-focused team continues to explore deeply undervalued projects and identify cutting-edge developments as they emerge.
Ready to explore the potential of Decentralized AI?
This is a pivotal moment. Our full video analysis breaks down the strategies, signals, and market patterns that make DeAI such a compelling opportunity right now.
If you’re ready to explore the Sarson Funds Decentralized AI Strategy, connect with our team. We are actively uncovering breakthrough opportunities, including our primary strategy partner, The Manifest Network. Their commercial-grade DePIN server infrastructure is helping decentralize blockchain node hosting and AI training, pushing innovation beyond the reach of big tech.
Contact us today at [email protected] or give our office a call to schedule a discussion about our strategies with our team.
Disclosures: Not investment advice. It should be assumed that Sarson Funds or its affiliated managers hold positions in all projects that are discussed. It is not possible to invest in any project directly through Sarson Funds, Inc. or its affiliated managers. Any investment product offered by managers affiliated with Sarson Funds should be assumed to be only available to Accredited Investors and subject to the individual terms and conditions of that offering including but not limited to those eligibility requirements associated with U.S. Securities Regulation D, section 506c. Talk with your financial advisor before making any investment decisions or have them contact Sarson Funds directly at [email protected].