Bitcoin News Today: Phala Powers Web3 AI Surge as Altcoin Momentum Shifts From Bitcoin

Altcoin Phala (PHA) is emerging as a key player in the upcoming altcoin season, with projections indicating a potential bull run of over 701%. As the execution layer for Web3 AI, Phala enables AI to interact with blockchains, positioning itself to unlock Web3 for the first billion users. Phala’s multi-proof system allows the development of tamper-proof and unstoppable AI agents that integrate with smart contracts through the AI-Agent Contract [1]. The platform offers features such as Agentize Smart Contracts, where users can develop AI agents using natural and programming languages; Connect to Multi-Agents, which allows agents to be accessible to other cross-chain AI agents; and Launch AI Agents and Earn, enabling users to profit from owning and deploying these agents [1].

Phala's Blockchain-TEE hybrid system ensures that AI agents can function like smart contracts with decentralized hosting, protected prompts, and low latency. This technological foundation supports Phala’s AI ecosystem, which includes tools like the AI Agent Contract for building decentralized AI applications, Agent Wars—a platform to create and monetize AI agents—and Redpill, an AI aggregator optimizing multiple AI models to increase network usage and computational power [1]. As of May 29, 2024, the maximum supply of PHA is capped at 1 billion tokens, with a circulating supply of 724,199,827 PHA. Investors can purchase PHA on major exchanges like Binance and Kraken [1].

The broader cryptocurrency market is showing signs of a structural shift, with altcoins outpacing Bitcoin in recent performance. While Bitcoin has been consolidating in a tight range, several major altcoins have posted stronger gains. Ethereum, for example, rose 7% to $4,350, while BNB reached a record high of $882 before easing to $862. Chainlink (LINK) surged 13% in a single day, wiping out earlier losses and continuing its upward trend [2]. Analysts have noted that Bitcoin’s apparent demand has fallen from 174,000 BTC in July to 59,000 BTC as of August 20, a decline of nearly two-thirds. Institutional activity has also weakened, with net inflows from Bitcoin ETFs over the past 30 days totaling only 11,000 BTC—the lowest since April. Broader accumulation strategies have also dropped significantly, reducing from a peak of 171,000 BTC in November 2024 to 27,000 BTC in the last month [2].

The weakening demand for Bitcoin is reflected in its declining market dominance, which now approaches a six-month low. As investors shift capital away from Bitcoin and into alternative assets, altcoins have gained traction. This trend aligns with historical patterns observed at the onset of altseasons, where liquidity rotates out of Bitcoin and into higher-beta tokens. While Bitcoin consolidates, smaller-cap altcoins are quietly gaining strength, potentially forming the foundation for Altseason 2025 [3]. Markets are also preparing for an altseason by closely monitoring Bitcoin dominance (BTC.D), which has broken below its recent uptrend, a historical signal for capital rotation into altcoins. At the same time, the TOTAL3 index—representing the market cap excluding Bitcoin, Ethereum, and stablecoins—is showing renewed strength, forming a higher low structure indicative of early accumulation [3].

Among the top altcoins positioned for accumulation before Altseason 2025 are Ethereum (ETH), Ripple (XRP), Solana (SOL), Chainlink (LINK), Sui (SUI), Sei (SEI), and Ondo (ONDO). Ethereum remains the backbone of DeFi and smart contracts, with institutional adoption strengthening demand. XRP continues to gain traction as a leader in cross-border payments, supported by regulatory clarity and growing partnerships. Solana’s ecosystem is thriving in DeFi, NFTs, and meme coins, while Chainlink’s oracle services connect real-world data to blockchains, reinforcing its role in Web3 infrastructure [3]. Sui and Sei are emerging as next-gen Layer-1 blockchains with specialized features for trading and DeFi applications. Ondo Finance is pioneering real-world asset tokenization, offering a unique opportunity in a multi-trillion-dollar market.

Phala (PHA) is well-positioned to benefit from the broader altcoin momentum due to its unique role in integrating AI with blockchain technology. As altseason progresses, the platform’s strong fundamentals and growing adoption may contribute to a significant price rally. The convergence of AI and blockchain is reshaping Web3, and Phala’s execution layer is at the forefront of this transformation, offering investors a compelling opportunity to participate in the next phase of crypto innovation [1].

Source:

[1] What Is Phala Network (PHA)? (https://www.forbes.com/digital-assets/assets/phala-pha/)

[2] Market Shifts: Altcoins Surge as Bitcoin Slows (https://www.cointribune.com/en/market-shifts-altcoins-surge-as-bitcoin-slows/)

[3] Markets Prepare for Altseason 2025: Top Picks Include ... (https://coinpedia.org/price-analysis/markets-prepare-for-altseason-2025-top-picks-include-ethereum-xrp-and-these-popular-altcoins/)