AI investments are still strong, even with a recent dip in software and SaaS stock performance. The market is changing how it values companies, but interest in AI remains high, proving fears of a downward trend unfounded.

Solana Drops Below $100

Solana’s (SOL) price fell under $100, dropping 6% as the broader cryptocurrency market declined. Despite this, on-chain data revealed a notable achievement of 150 million daily transactions, indicating continued network activity. We noticed signs of a European slowdown in early 2025 when the German services PMI fell short of expectations. This trend eventually led the European Central Bank to start cutting rates in the third quarter. With Eurozone inflation data for January 2026 at a low 1.9%, traders should look for chances to buy call options on the DAX index as supportive monetary policy looks likely to continue. Early 2025 showed weak job growth in the U.S., signaling a quicker cooling of the economy than anticipated. This led to a brief, mild recession at the end of 2025 and prompted aggressive rate cuts from the Federal Reserve. Now, the latest Non-Farm Payrolls report for January 2026 recorded a stronger-than-expected gain of 210,000 jobs. It might be wise to use VIX futures to protect against growing uncertainty regarding the Fed’s next steps.

Repricing of AI Stocks

The re-pricing of AI stocks throughout 2025 was an essential correction that distinguished real earnings from hype. Companies specializing in AI infrastructure and chips have significantly outperformed those merely integrating AI into software, with the semiconductor index (SOX) rising 22% in the past year. A strategy of going long on a leading chipmaker while buying put options on a software ETF continues to be a strong way to capitalize on this performance gap. Reflecting back, Solana’s price drop below $100 in early 2025 marked a crucial point, as the record level of on-chain activity demonstrated real adoption. This high utility eventually led to a price recovery that outshone most of the market later that year. With SOL now trading around $180 and its 30-day realized volatility dropping to 65%, it’s an appealing time to sell out-of-the-money puts to capture premiums from traders who still anticipate price fluctuations. Create your live VT Markets account and start trading now.

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