Artificial intelligence (AI) cryptos have been all the rage in the altcoin space lately. While Bitcoin (BTC-USD) continues to dominate the crypto market, AI cryptos have surged ahead of the rest of the altcoins by leaps and bounds. The altcoin market is primarily driven by retail investors, and this is especially true for the smaller AI crypto projects. These retail investors are eager to pay higher and higher premiums for these digital assets as the crypto rally marches on. The best part is, we haven’t even hit “altseason” yet when Bitcoin’s dominance ends and altcoins really start to fly. Once that happens, these AI cryptos could absolutely go parabolic.
Of course, small-cap cryptos represent the extremely high-risk, high-reward end of the investment spectrum. But if you’re looking for those elusive 100x gains, AI cryptos present some enticing opportunities. You’d always want to balance risk versus reward. And while Bitcoin is considered lower risk, its days of massive gains are likely behind it. AI cryptos offer the chance to turn a relatively modest investment into life-changing money.
Qtum (QTUM-USD)
Unlike most other AI cryptos on this list that are simply contracts on other blockchains, Qtum (QTUM-USD) is a full-fledged AI ecosystem with its own blockchain. Qtum (pronounced “quantum”) is a proof-of-stake (PoS) smart contract open-source blockchain platform and value transfer protocol. It combines the strengths of Bitcoin’s security with Ethereum’s (ETH-USD) smart contract functionality. Qtum is built on Bitcoin’s UTXO transaction model and supports smart contract execution, DApps, and recently, DeFi applications. Dozens of tokens have been created on the Qtum blockchain.
The Qtum main chain was released in September 2017 after converting from an initial ETH-20 token to a native blockchain upon launch. With a current market capitalization of $455 million, I believe Qtum can still deliver significant gains from here and emerge as one of the top AI blockchain projects.
Qtum recently announced the acquisition and deployment of 10,000 Nvidia (NASDAQ:NVDA) GPUs to power new AI initiatives, including conversational chatbots like Qtum Solstice, similar to ChatGPT, and Qtum Qurator, an open-source text-to-image generator akin to Midjourney. Qtum also plans to expand into video and voice AI applications on its platform.
Given these ambitious AI capabilities and the increased investor attention towards AI crypto projects, I believe Qtum warrants a considerably higher valuation, especially once altcoin season kicks off.
Paal AI (PAAL-USD)
PAAL AI (PAAL-USD) has rocketed over 5x since I first recommended it in January. But with altcoin season around the corner, this crypto still has ample room to run. We’re early in the bull cycle, so innovative projects like PAAL look primed for huge gains.
Paal’s chatbot can handle routine tasks like booking hotels or food delivery. Users can pay in fiat currencies, with automatic conversion to PAAL. However, owning PAAL unlocks exclusive rewards and capabilities. PAAL is also an eco-friendly choice compared to energy-hungry proof-of-work cryptos.
Chatbots are projected to hit $32 billion by 2032. So PAAL’s niche at the intersection of AI and crypto is compelling. It’s still early days, but PAAL could gain serious traction with the right execution.
PAAL looks relatively inexpensive if interest in AI and crypto keeps surging. With recent highs and a $574 million market cap, PAAL has big upside potential as adoption expands.
Optimus AI (OPTI-USD)
Optimus AI (OPTI-USD) is a much smaller project seeing significant volatility lately. The market capitalization is just $36 million currently and could drop further in the turbulent market. However, I believe Optimus can take off like PAAL AI long-term once altseason propels altcoins higher.
Optimus AI aims to build and foster the largest AI community while providing exposure and resources to innovations. Developers can apply for grants through the Optimus Venture Fund, with the community as primary decision-makers on which projects to fund. It has niche use cases as an AI/crypto community token rather than a utility coin. While the hype around Elon Musk’s Optimus Robot likely drives some interest, crypto retail investors will invest in anything referencing “AI.” Caution is still warranted due to the 6% sell tax on the Optimus token.
Optimus has also acquired Mission Helios and space flight rights with Sidus (NASDAQ:SIDU) and SpaceX. Optimus will brand a satellite aboard a SpaceX rocket this fall to introduce the first NFTs from space. This provides major hype potential going forward.
Solidus AI (AITECH-USD)
Solidus AI (AITECH-USD) has also been surging recently. It’s another small AI crypto parabolic lately, with a $179 million market cap currently. I believe it can eclipse $1 billion during altseason if the crypto bull run persists.
After a minor cooldown, 36 cents seems a decent entry point in my view. My bullish case stems from Solidus claiming to operate a physical AI data center. Most AI projects are hype coins with questionable real-world use. Solidus having an actual data center makes it more enticing.
Solidus has built an eco-friendly, state-of-the-art 8,000+ square foot High-Performance Computing Data Centre in a secure European location. Solidus plans to unveil AITECH, a deflationary token serving as a payment gateway for licensing AI as a Service, Blockchain as a Service, and data center Infrastructure as a Service. AITECH is already up 273% in the past month.
Clore.ai (CLORE-USD)
I discussed Render Token (RNDR-USD) last year, which has since gone parabolic. For those who missed that opportunity, Clore.ai (CLORE-USD) is worth a look. Clore.ai enables affordable, flexible access to powerful computing through a decentralized network. Renters and providers benefit from streamlined leasing and minute-by-minute billing.
It’s quite similar to Render but with a market cap around $96 million currently. I believe Clore.ai could reach $1 billion or more during the next altcoin run. Demand for graphics and rendering power is accelerating rapidly. OpenAI’s text-to-video announcement sent Render and related projects surging. Clore.ai seems poised to ride a similar wave as text-to-video models require immense rendering power. This is an ideal blockchain use case, allowing decentralized computing resource sharing.
Clore.ai offers a timely solution. At current prices, it appears inexpensive relative to the massive total addressable market. Clore.ai’s niche focus at the intersection of blockchain and computing power sharing gives it breakout potential if adoption takes off.
enqAI (ENQAI-USD)
enqAI (ENQAI-USD) is quite similar – an AI platform for generating images, audio, and language models via a decentralized GPU network. Its uniqueness stems from building more than just a GPU network. EnqAI makes AI models that avoid censorship.
Certain AI models refuse inappropriate questions by ending conversations. While that’s beneficial, uncensored AI also has value. EnqAI enables this on a decentralized network. However, use caution as enqAI is brand new and not on centralized exchanges yet.
I believe smaller AI/rendering cryptos like enqAI could gain collectively in the next altcoin run. Having a basket of these types of cryptos seems prudent before a potential surge. However, you should stick to investments you can afford to lose given the nascency of these projects.
OpenFabric AI (OFN-USD)
OpenFabric AI (OFN-USD) has also surged recently amid the spillover of AI hype into crypto. This new project bills itself as a decentralized layer 1 AI protocol tailored for AI apps.
OpenFabric aims to offer easy, low-cost AI capabilities for all. Its ecosystem includes apps like Hypervectors, NeuroCode, and the OpenFabric Virtual Machine.
For developers, OpenFabric provides tools to build AI apps like a modular studio, sandbox, and algorithms. Numerous partnerships have formed, with “Friend3” being the latest.
While very speculative, if interest in AI-focused blockchain projects continues growing exponentially, OpenFabric could be an early winner. The market cap here is just $39 million.
On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
