The recent dip in cryptocurrencies presents a prime buying opportunity for savvy investors ahead of the upcoming halving event. Historically, Bitcoin (BTC-USD) has undergone a correction in the months leading up to each halving. However, the tide is about to turn. Once the halving cuts mining rewards in half, it could drive Bitcoin upwards to $100,000 or more as supply tightens. Billions in spot ETF inflows have already fueled a supply crunch. When this is combined with the halving-induced scarcity, conditions will be ripe for the next leg up.

Moreover, the Fed is likely to cut rates this year, providing additional rocket fuel for cryptocurrencies. So, while the pre-halving slide has been an unwelcome bump in the road, the macro backdrop remains highly favorable. I believe now marks an opportune time to take positions before the next surge higher. Let’s take a look!

Data Lake (LAKE-USD)

Medical science stands on the cusp of a “revolution” in new and better treatments as medical AIs, machine learning, and other data-powered tools come online. The major obstacle for researchers is gaining ethical access to quality medical data in the first place, while also ensuring it is free from bias.

This is where Data Lake (LAKE-USD) comes in. It is building a medical “data donation system” using blockchain to record and verify donor consent, ensuring data is only used with express permission. This consent architecture runs on Polygon (MATIC-USD), an Ethereum (ETH-USD) layer-2 chain offering low fees, fast transactions, and robust scalability. Data Lake has been around for over a year, which is a rarity in the world of medical AI cryptos, most of which are only months old. It has grown steadily in the current cycle, and its $20 million market cap leaves substantial room for upside ahead.

Beldex (BDX-USD)

Beldex (BDX-USD) bounced sharply higher starting last November, though it has tracked the broader crypto market the past few months. However, I believe it could surge in the next leg up given its relatively modest $244 million market cap. Beldex’s mission is to enable private and secure data exchange. The project focuses on protecting individual privacy through systematic research into confidential transactions and user security. Its ecosystem supports private dApps including BChat, BelNet, the Beldex browser, the Beldex protocol, and the Beldex bridge. As a proof-of-stake blockchain, Beldex could become a leading layer-1 ecosystem for dApps if it gains traction during this cycle.

Beldex taps into powerful tailwinds. Its privacy features are proving increasingly relevant as regulation tightens. Moreover, BDX has held up better than most cryptocurrencies recently. As altcoin volumes return, cryptocurrencies with strong use cases and modest valuations often post outsized gains. Beldex checks both boxes. I believe its current valuation leaves substantial upside potential as we enter the next leg up.

Spectre AI (SPECTRE-USD)

Spectre.ai (SPECTRE-USD) includes X Bubblemaps, Sentiment Analysis charts, and TA chatbots for crypto price predictions on Telegram. Its price performance has been impressive compared to the broader crypto market. Spectre is still up 215% over the past month and has held up relatively well from its peak. With a market cap of just $18 million, I believe significant additional upside exists as we enter the next bull run.

Price predictions and swing trades are wildly popular in crypto, mainly driving interest in altcoins. As altseason kicks into high gear, projects catering to this segment of DeFi could surge when volumes increase. With its focus on predictions, charts, and trading bots, Spectre is well-positioned to ride this wave. Its limited dilution also boosts its prospects, with 91% of the max supply already circulating.

Spectre has greatly outperformed the market recently even as most alts have stagnated. With its niche utility and low market cap, I think Spectre could deliver multibagger upside from here amid the next alt frenzy. Tapping into the mania around crypto predictions, Spectre has all the hallmarks of an altcoin built for parabolic gains during the coming run.

Synthesis One (SNS-USD)

Synthesis One (SNS-USD), a DAO, operates a play-to-earn system to incentivize users to create datasets for training AI models. It also sells NFTs that provide staking rewards and membership benefits. With the price plunging from 20 cents to 5 cents in just over a month, SNS may seem attractive after its steep decline. However, I would urge caution before investing heavily, as play-to-earn models and NFT memberships often signal Ponzi schemes.

While the next wave of hype in AI could send SNS soaring again, its business model raises red flags. Still, more risk-tolerant speculators may try bottom-fishing given the huge selloff. Just keep position sizes prudent, as further declines remain possible. Crypto ponzis can drop 95% or more once the mania fades. While I’m wary of SNS’s long-term viability, tactical traders may play short-term bounces. But approach with eyes wide open about the potential downside.

ARC (ARC-USD)

ARC (ARC-USD) taps into two powerful cryptocurrencies’ trends I’m most bullish on entering the next leg up. ARC uses smart order routing technology to find users the optimal price across centralized and decentralized exchanges. This algorithm consistently extracts maximum value from available liquidity. ARC appeals to both institutions and retail through advanced trading tools and an intuitive interface.

Its Reactor software enables easy development of Web 3.0 and blockchain contracts and protocols. With altseason still in its early innings, DeFi projects with modest valuations often surge when volumes spike. ARC checks those boxes with its blend of DeFi trading tools and Web 3.0 development platform. While its technology appeals more to sophisticated crypto traders, the intuitive interface also opens DeFi to everyday investors. As alt fever returns, ARC could ride the wave with its dual DeFi and Web 3.0 focus.

AIT Protocol (AIT-USD)

AIT Protocol (AIT-USD) operates a subnet on Bittensor (TAO-USD) focused on data analysis to optimize the accuracy of Bittensor’s models. Bittensor itself has been one of the top-performing AI cryptos, surging 670% in six months to a $3 billion market cap. While Bittensor is correcting, its meteoric rise demonstrates the massive potential in crypto AI. AIT is well-positioned to ride Bittensor’s coattails.

However, AIT’s tokenomics are a concern, with substantial dilution ahead. This makes AIT more suited to shorter-term trading than long-term holds. Still, we’re early in altseason. With Bittensor’s firepower, AIT could see parabolic gains in the frenzy phase even with its flawed tokenomics. But take care to avoid being left holding the bag when the mania fades. AIT is not to be bought and held long-term, in my opinion.

Mintlayer (ML-USD)

Mintlayer (ML-USD) enables DeFi, dApps, and smart contracts on the Bitcoin blockchain through its Layer 2 solution. With a market cap of $24 million, it could multiply in the alt frenzy as capital rotates into smaller projects. Mintlayer is more tied to Bitcoin compared to other alts, making it attractive during Bitcoin’s dominance phase.

Mintlayer facilitates direct 1:1 swaps of native BTC for tokenized assets minted on its network. This eliminates counterparty risk and intermediaries. No other project has enabled trustless Bitcoin swaps in this manner. Mintlayer also runs on a highly decentralized node infrastructure accessible to almost anyone.

While 90% of supply is yet to be released, this dilution is over many years. Mintlayer’s novel BTC swaps and decentralization make it a high-quality microcap alt. With sound tokenomics and real utility, it could outperform most cryptocurrencies during the mania stage. Of course, upside comes with substantial risk. But Mintlayer checks more boxes than most sub-$50 million cryptocurrencies.

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.