Ethereum Updates: In the Crypto AI Competition, Consistent Strategy Outshines Bold Moves as DeepSeek Overtakes Competitors

Bitget App

Trade smarter

Bitget-RWA2025/10/27 04:40

By:Bitget-RWA

- DeepSeek AI outperformed rivals in Alpha Arena's crypto trading test, achieving a 35% return via diversified risk management and strict stop-loss rules. - Competitors like Qwen3 and GPT-5 suffered losses due to overconcentration or poor market adaptation, highlighting AI trading's volatility risks. - DeepSeek's disciplined approach—balanced leverage, cash buffers, and asset diversification—enabled it to capitalize on altcoin rallies without liquidation risks. - China's military increasingly adopts DeepSe

During a pioneering live trading challenge, DeepSeek AI delivered a remarkable 35% profit within three days, surpassing top competitors such as Qwen3 and GPT-5 in a high-profile cryptocurrency trading contest, as detailed in a

BeInCrypto report

. Organized by Alpha Arena, the event featured six advanced AI models, each allocated $10,000 to trade

BTC

, ETH, SOL,

XRP

DOGE

, and

BNB

on Hyperliquid’s perpetual markets. DeepSeek’s methodical strategy—diversifying across all six cryptocurrencies, enforcing strict stop-losses, and keeping a $4,900 reserve—enabled it to benefit from the altcoin surge during the test, according to a

SuperEx article

. The competition, which wrapped up on October 20, 2025, highlighted the increasing promise of AI-powered trading in unpredictable markets.

The Alpha Arena event showcased significant differences in AI trading outcomes. DeepSeek’s balanced, rules-based approach produced a 35% gain, while Qwen3 Max—a leading domestic competitor—ended with a 0.25% loss after heavily investing in

Bitcoin

alone, as noted by BeInCrypto. GPT-5 and Gemini 2.5 Pro performed even worse; Gemini 2.5 Pro lost 33% by shorting BNB during a price rally, according to SuperEx. These results underscore the critical role of risk control and adaptability in algorithmic trading. DeepSeek’s unrealized gains were spread evenly among assets, with ETH and SOL making the largest contributions, while its competitors often concentrated their bets or failed to respond to market changes, BeInCrypto observed.

Ethereum Updates: In the Crypto AI Competition, Consistent Strategy Outshines Bold Moves as DeepSeek Overtakes Competitors image 0

The experiment’s design prioritized independence and openness. All AI models received the same prompts and real-time market information, operating entirely without human input. The top performer, DeepSeek Chat V3.1, strictly followed its trading rules, avoided excessive trading, and only exited positions when its criteria were met, BeInCrypto reported. In contrast, models like Claude Sonnet 4.5 held significant ETH/XRP positions but left 70% of their funds unused, reducing their ability to compound gains, as SuperEx pointed out. Analysts credit DeepSeek’s achievement to its careful balance of assertiveness and prudence, using 10x–20x leverage while steering clear of liquidation, BeInCrypto added.

Beyond the trading contest, DeepSeek’s influence is expanding into China’s defense and technology arenas. As reported by

MarketScreener report

, the Chinese People’s Liberation Army (PLA) has increasingly adopted DeepSeek’s AI models, with more than a dozen procurement notices referencing them in 2025. This trend aligns with Beijing’s drive for “algorithmic sovereignty,” aiming to decrease dependence on Western tech. While military uses are not officially confirmed, the PLA’s preference for DeepSeek over competitors like Alibaba’s Qwen indicates the model’s reliability in demanding, high-risk scenarios, MarketScreener noted.

As the cryptocurrency landscape shifts, the distinction between human and algorithmic traders continues to

blur

. DeepSeek’s success in Alpha Arena could signal wider use of AI in trading, but it also prompts discussions about regulation and market integrity. For now, the experiment vividly illustrates how well-designed, diversified algorithms can handle market turbulence more effectively than people.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops

Lock your assets and earn 10%+ APR

Lock now!

- Dogecoin (DOGE) fell below $0.20 as investors shift to high-growth altcoins like Mutuum Finance and $LYNO in DeFi and AI trading. - A drop in DOGE's SOPR metric below 1.00 signals break-even selling, with analysts eyeing a potential rebound above $0.21 resistance. - Institutional interest grows via Bit Origin's Nasdaq listing, while regulatory risks and U.S.-China trade talks add market volatility. - Bybit's expanded derivatives for DOGE and XRP aim to boost liquidity, but macroeconomic uncertainties del

Bitget-RWA•2025/10/27 17:48

Dogecoin News Update: As Dogecoin Falls Under $0.20, Investors Turn to Rapidly Growing Altcoins

Ferrari’s Electric-Blockchain Fusion: Redefining Prestige in a Transformed Automotive Age

- Ferrari accelerates EV transition via SK On battery partnership and blockchain-powered 499P auction, targeting 2026 EV launch with 530 km range. - Tokenized Hyperclub auction with Conio accepts crypto payments, expanding luxury access for 100 elite clients while leveraging 2025 crypto wealth growth. - Strategic balance of heritage and innovation includes Hot Wheels F1 models, €2B share buybacks, and hybrid EV approach to counter Porsche's 99% profit drop. - CEO Vigna emphasizes redefining luxury ownershi

Bitget-RWA•2025/10/27 17:48

Ferrari’s Electric-Blockchain Fusion: Redefining Prestige in a Transformed Automotive Age

XRP News Today: Ripple's Prime Brokerage Initiative Drives Increased Institutional Interest in XRP

- XRP maintains $2.60 support amid mixed markets, with U.S. inflation data likely to drive next price direction. - Ripple's $1.25B acquisition of Hidden Road (Ripple Prime) accelerates institutional adoption through RLUSD integration and XRPL operations. - Evernorth's 261M XRP holdings ($639M) and planned SPAC IPO in 2026 could create largest public XRP treasury, boosting institutional demand. - Technical indicators show bullish momentum above $2.45, but 15% monthly decline and regulatory uncertainty persi

Bitget-RWA•2025/10/27 17:48

XRP News Today: Ripple's Prime Brokerage Initiative Drives Increased Institutional Interest in XRP

1inch and Innerworks' AI Predicts Cyber Attacks, Stopping Threats in Advance

- 1inch partners with Innerworks to deploy AI-driven "immune system" for proactive DeFi threat neutralization. - The solution uses synthetic threat intelligence to predict and counter AI-powered attacks before execution. - This collaboration addresses DeFi's vulnerability to AI-mimicked human behavior attacks with 99% bypass rate in trials. - The "invisible defense" model aims to set new security standards while maintaining frictionless transactions for 25M users.

Bitget-RWA•2025/10/27 17:48