TechFlow news, yesterday the crypto hedge fund Galois Capital published an analysis on how changes to Twitter's algorithm have impacted the cryptocurrency market. It pointed out that since the default Twitter algorithm changed, narrative formation in the crypto space has weakened.
Galois Capital believes users are now split between the "For You" and "Following" feeds, causing fragmented attention and making it difficult for long-term narratives to emerge.
Galois Capital also noted the current market lacks killer applications, leading to widespread imitation, such as the competition between DriftProtocol and Polymarket in the prediction markets sector. This may reflect a lack of innovation at the application level, or alternatively, could be an unintended beneficiary of the Twitter algorithm change.
Galois Capital further discussed a possible reflexive mechanism between the crypto industry and political attention, as well as the potential advantage short-term narratives may enjoy under the current environment.
Finally, it raised two questions: how can we return to better times, and in the face of unchangeable conditions, which tokens might perform better? Zhou predicted that as dopamine fatigue sets in, the market may trend back toward higher-quality projects.
