What a great ride 2024 has already been! Bitcoin is up 60% year-to-date and is nearing price discovery mode after taking out its previous all-time high. Ethereum, Solana, and other top altcoins have followed the #1 asset’s price action and have registered considerable gains too.
We are definitely amidst the start of an exciting bull run in the last 18-24 months. To maximize your crypto portfolio returns, it's prudent to allocate a good share to emerging and upcoming narratives that will drive value in the ecosystem. In our last article, we covered layer-2 solutions, decentralised protocols and gaming ecosystems.
Today, we will cover AI, DePin and other narratives. While we do the crystal gazing, we encourage investors to understand the risks and growth potential associated with each asset and do their independent analysis.
Crypto Tracker
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AI tokens – RNDR, FET, and AGIX (higher risk, good returns)
AI is the next big narrative globally and crypto-based AI tokens have the potential to deliver decentralized scaling of AI solutions. The frontrunners in this space are Render (RNDR) and Fetch.ai (FET). The risks involved in this space are: how well the general AI narrative takes shape globally and how soon.
RNDR is basically a decentralised GPU network. If you have idle GPU at your home, you can loan out that GPU for others to use to implement AI services. A simple yet effective idea. RNDR has a market cap of $3.7 billion currently and can do a 5-8x over the next two years potentially.
Fetch (FET) ecosystem basically delivers AI services in a decentralized environment. Businesses can create AI agents (core component of this network) that can interact with others with FET being its utility token. FET has been one of the leading AI coins that has shown strength through the bear market. Currently at a market cap of $2 billion, FET can scale similarly to RNDR.
Another token to watch out for in this space is SingularityNET (AGIX). AGIX allows users to easily create, share, and monetize AI services, thanks to its globally-accessible AI marketplace. AGIX, at $1.5 billion market cap today, can do a 8-10x and is a darkhorse of the space.
DePIN – FIL, HNT, and AR (medium risk, considerable returns)
DePIN, short for decentralised physical infrastructure networks, are blockchain protocols that build, maintain, and operate physical hardware infrastructure in an open and decentralized manner. They enable the functioning of blockchains on the backend while enabling them to flourish and scale.
Key tokens to observe are Filecoin (FIL), Helium (HNT), and Arweave (AR).
Filecoin is an open-source cloud storage marketplace protocol that solves data storage in a decentralized space. FIL is already a top #25 crypto asset with $5 billion market cap. If decentralized data storage becomes big, FIL can do 5-7x from current levels over the next 2 years.
Helium (HIL) plays in the people-powered network space – users can create their own hotspots and connect to a decentralized wireless network. Helium has nearly 1 million hotspots connected already and these have helpful applications in IoT and other network functions. HNT, with a market cap of $1.4 billion, can do a 6-9x over the next two years.
Arweave (AR) is also tackling decentralized storage and is backed by Meta (Instagram). It has developed strong tech and partnerships and has risen well in 2024 (4x since Jan. 2024). There is potential for another 6-8x for this token.
Memecoins on Layer 1s (highest risk, disproportionate returns)
We don’t recommend investors aping into memecoins as a trend. But memecoin plays are becoming a valid way for speculators and gamblers to thrive during bull runs. If at all you are looking at this growing class, be ready to lose it all (and therefore allocate a <2% of crypto portfolio into them).
The narrative to follow here is to identify the main memecoins on Layer 1s that are growing well – they give a higher beta to layer 1 assets.
Examples are: Ethereum (DOGE, SHIB, PEPE, FLOKI), Solana (BONK, WIF, MYRO) and Avalanche (COQ).
The ever dependable – BTC, ETH and SOL (lowest risk, decent returns)
When we do a list of crypto projects to invest in, it’s difficult to discount the impact and appeal of Bitcoin (BTC) and Ethereum (ETH). They are proven assets that drive the entry of new investors in the space (both institutional and retail). Solana (SOL) is soon becoming a solid #3 in this list. The returns will be less significant compared to other assets (3-6x) but still they are relatively risk-free.
(The author is CEO, Giottus Crypto Platform)
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(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
