BlockBeats News, May 16th. Earlier this month, the market sentiment saw a temporary improvement, with the CoinMarketCap Shitcoin Season Index briefly rising to around 50. The search volume for "altseason" hit a new high for the year, and the total crypto market cap rebounded to around $2.74 trillion. However, we have not yet entered a full-fledged altseason. Bitcoin still dominates, and the market is seeing more of a "structural rotation" rather than a broad rally.

Looking at the fund flows, the sectors that are currently performing well are mainly focused on three major directions: Artificial Intelligence (AI) tokens, Real-World Assets (RWA), and Decentralized Physical Infrastructure (DePIN). RWAs are benefiting from the expansion of on-chain US bonds and credit products, the AI sector is gaining institutional attention due to the growth in actual revenue and computing power demand, and DePIN is continuing to heat up driven by AI computing power and infrastructure needs.

Meanwhile, Ethereum and the Layer-2 ecosystem are recovering from their cyclical lows, becoming a key channel for potential fund rotation. Analysts point out that despite the warming sentiment, Bitcoin dominance remains high, stablecoin funds have not yet flooded into the altcoin market on a large scale, and a true full-fledged altseason still awaits further transformation in fund structure.