AI cryptos have cooled off recently. For many investors, this could signal an accumulation opportunity. For others, it could be a sign of more downside to come. After all, many such tokens have surged in value, far outpacing Bitcoin (BTC-USD) and other large-cap tokens.
That said, I think utility-generating altcoin projects could have greater upside potential following the upcoming Bitcoin halving, assuming momentum picks up (as it usually does). The so-called alt season could bring massive upside to investors willing to take on the speculative risk that comes alongside this space and buy certain AI cryptos positioned to rally.
Of course, some projects are simply better than others in this space. Here are three I think are worth considering right now.
Fetch.ai (FET-USD)
Fetch.ai (FET-USD) is working on developing a decentralized machine-learning crypto network that’s accessible to all. The project offers secure data access and autonomous AI capabilities. Users create AI agents for diverse tasks, allowing for a range of potential use cases (and more to come as the platform grows).
Fetch.ai merges the functionality of blockchain technology with the growth potential AI provides. If successful, Fetch.ai could enable a global marketplace for machine learning models and data. Users develop intelligent applications across industries, leveraging LLMs and secure data transactions. Nvidia’s (NASDAQ:NVDA) recent $100M investment in AI GPUs hints at accelerated growth potential.
Fetch.ai has seen increased interest around a collaboration with Ocean Protocol and SingularityNET to establish a decentralized AI alternative, pending community approval. The goal is to potentially merge these projects, forming an interoperable network. Such a collaboration could be the pinnacle of blockchain-based AI systems, but we’ll have to see how this all pans out.
The Graph (GRT-USD)
The Graph (GRT-USD) thrives as a key player on the infrastructure side of the equation. The project powers AI applications, and other utility-generating decentralized applications via its oracle network. Essentially, the graph allows developers to take data from off the blockchain and port it on-chain. Doing so allows for the kinds of real-world applications crypto users have become accustomed to seeing.
GRT soared 65% last week, surpassing several significant cryptos. Its rise aligns with growing AI interest, as it is an essential blockchain infrastructure. The Graph’s decentralized protocol supports AI development, fostering ecosystem growth and long-term viability. That’s key to the underlying thesis for this project right now. However, it’s not only AI applications demanding more of what The Graph offers — a host of other applications in other sectors are seeing increased demand for the project’s services.
Over time, I think The Graph will benefit from many secular tailwinds. Right now, AI is the catchiest tune investors are singing. The thing is, this project’s infrastructure offerings are integral to the proper functioning of this sector. So, no matter what’s hot at a particular moment in time, this is a project that should perform well.
Bittensor (TAO-USD)
Bittensor (TAO-USD) surged to $595.87 on Monday, approaching a key $600 resistance level. Some technical analysts suggest further potential upside is possible, with a bull flag pattern forming. I think other fundamental factors could drive such a view.
Bittensor aims to establish a decentralized Web3 AI marketplace. Positioned among April’s top cryptos, it incentivizes resource sharing, fostering machine intelligence development. TAO token rewards contributions, offering potentially high returns, with analysts foreseeing $750 by year-end.
Subnet registration costs in Bittensor double with each registration, and halve if no one registers within four days. Analysts debate whether high costs hinder innovation or prevent misuse. However, since subnets allocate TAO rewards based on performance, this feature encourages efficiency and accuracy. Competition among subnets ensures emissions go to active areas, with underperforming subnets deregistered daily.
On the date of publication, Chris MacDonald 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.
