Raoul Pal Says Weaker Dollar Would Signal More Crypto Gains as AI Money Shifts to Ethereum, Solana

Raoul Pal, co-founder of Real Vision, said a shift toward dollar weakness could signal further gains in the cryptocurrency market. He also said capital tied to artificial intelligence investing has begun moving into smart-contract platforms such as Ethereum and Solana.

Cointelegraph reported on October 6 that Pal, speaking on the latest episode of Cointelegraph’s "Trade Secrets" podcast, said a weaker dollar would be a green light for more upside in crypto. Still, he added, "not everything has turned fully green yet." In his view, rising bond yields and a strong dollar are still blocking liquidity flows.

Pal said money has tended to flow into crypto whenever enthusiasm for AI investing briefly cools. Liquidity rotation is now underway, though liquidity is not yet abundant, he said. He also warned that a collapse of the AI bubble would hurt crypto as well. "If there is enough liquidity, bubbles do not burst," Pal said.

His preferred scenario is a weaker dollar, a wider gap between long- and short-term interest rates, and money-supply growth driven by increased bank lending. If those conditions are not met, his fallback case is for AI-related stocks to move sideways while capital rotates into crypto.

Pal was somewhat cautious on Bitcoin. He said the crypto-based economic activity generated by AI agents is more likely to benefit Ethereum and Solana because both have smart-contract capabilities. As AI increasingly uses the smart contracts on Ethereum and Solana, adoption of both networks will rise over time, he said.

He also pushed back on the idea that Solana will overtake Ethereum in market capitalization. Kyle Samani, co-founder of Multicoin Capital, said on the same podcast in September that Solana could surpass Ethereum by market capitalization in the current cycle. Pal said that was possible, but investors should be more cautious. According to DefiLlama, Ethereum had $54.4 billion in decentralized-finance deposits, far ahead of Solana’s $6.7 billion. Pal said Solana’s core activity is speculative and its transaction volume itself remains small.