Approaching Crypto Summer Will Drive Valuations of Two Digital Asset Subsectors To ‘Dumb’ Levels, Says Raoul Pal

Former Goldman Sachs executive Raoul Pal believes two digital asset subsectors could witness absurd valuations when the market hits crypto summer.

Pal tells his one million followers on the social media platform X that during the “crypto summer” phase of the current market cycle, altcoin projects related to artificial intelligence (AI) and tokenized real-world assets (RWA) could go parabolic.

A “crypto summer” generally means increased prices and higher trading volume.

Says Pal,

“But Crypto Summer and Fall will be confusing because everything will have a narrative and will get caught up in euphoria.

This is when memes really get silly in price, unproven narratives like AI and RWA go to dumb valuations, etc.”

He also believes that Ethereum (ETH) could outperform Bitcoin (BTC) during this time and Solana (SOL) could outperform both Bitcoin and ETH.

“Crypto summer is usually the start of alts season which goes full ‘bubble-tastic’ in fall. This is when ETH bases and begins to outperform BTC. This is when SOL accelerates its outperformance of BTC and ETH.”

While the macro investor holds a rosy outlook on the crypto markets, he warns that digital assets will not move toward new all-time highs in a straight line.

“We will also see another two or so nasty corrections due to excess leverage. The banana zone cometh.”

Pal previously said that crypto is inching closer to the banana zone, or a period where Bitcoin and altcoins witness parabolic rallies en route to greater heights.

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