Raoul Pal Sees Weaker Dollar Boosting Crypto as AI Money Moves to Ethereum and Solana

Raoul Pal, co-founder of Real Vision, suggests that a weakening U.S. dollar could pave the way for further gains in the cryptocurrency market. He noted that capital tied to artificial intelligence (AI) investing is now flowing into smart-contract platforms like Ethereum (ETH) and Solana (SOL), which could drive adoption for both networks.

Speaking on Cointelegraph’s 'Trade Secrets' podcast, Pal said rising bond yields and a strong dollar are still limiting liquidity flows into crypto. However, he added that money tends to move into crypto when AI investment enthusiasm cools temporarily. Pal also cautioned that a collapse of the AI bubble would negatively impact crypto markets.

Pal expressed caution about Bitcoin (BTC), arguing that AI-driven economic activity is more likely to benefit Ethereum and Solana due to their smart-contract capabilities. He also disagreed with predictions that Solana could surpass Ethereum in market capitalization, citing Solana’s smaller transaction volume and speculative focus compared to Ethereum’s dominant position in decentralized finance (DeFi).

According to DefiLlama, Ethereum holds $54.4 billion in DeFi deposits, far exceeding Solana’s $6.7 billion. Pal’s preferred scenario includes a weaker dollar, a wider gap between long- and short-term interest rates, and money-supply growth driven by bank lending. If these conditions are not met, he expects AI-related stocks to move sideways while capital rotates into crypto.