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Prediction: Bitcoin halving will make these cryptocurrencies soar
From layer 1 blockchain networks to AI crypto tokens, these cryptocurrencies could increase in value after Bitcoin’s halving.
In the aftermath of the April halving, Bitcoin (Bitcoin 0.64%) has understandably been the focus of cryptocurrency investors. Bitcoin has historically rallied in the early stages of a halving cycle, and investors see the current period as a great time to buy Bitcoin before it potentially goes parabolic.
But don’t forget about it altcoins. These also tend to work very well after all Bitcoin halving, as a rising Bitcoin price tends to push the entire cryptocurrency market higher. As they say, a rising tide lifts all boats. With that in mind, here’s a closer look at a handful of cryptocurrencies that could increase in value in 2024.
Layer 1 blockchain networks
As a starting point, consider layer 1 blockchain networks. These include names with large market capitalizations such as Ethereum (ET -0.01%), SolanaAND Avalancheas well as a handful of smaller, more nimble competitors such as Aptos AND Come on. All of these currently rank among the top 50 cryptocurrencies in terms of market capitalization, with Ethereum being the clear market leader with a huge valuation of $460 billion.
The reason why these layer 1 blockchains have a good chance of outperforming the market is that they are the building blocks of the blockchain economy. Think about any key blockchain niche, such as decentralized finance (DeFi), non-fungible tokens (NFTs), gaming, or the metaverse. All of these are built on top of layer 1 blockchains. As a result, any cryptocurrency bull market rally could lift all of these segments at once. The breakout could be tremendous, given how much some of these sectors were beaten down during the “crypto winter” of 2022.
While there are many options here, my personal preference involves only three of these Layer 1 blockchains: Ethereum, Solanaand Sui. Ethereum is the 800 pound gorilla in this space. Solana is the much-hyped “Ethereum killer.” And Sui is the “Solana killer”. So, you can invest in the market leader or an emerging rival. The choice is yours.
AI crypto tokens
Typically, the Bitcoin halving leads to what cryptocurrency investors call “altcoin season.” As investors seek higher returns, they begin to accept more risk. This is the time when small, little-known cryptocurrencies can explode seemingly out of nowhere and dramatically outperform Bitcoin.
Image source: Getty Images.
If you have a large appetite for risk, then you may want to consider AI crypto tokens. Simply put, these are cryptocurrencies that are highly leveraged relative to the current boom artificial intelligence. With that in mind, my top two picks here are Render (RNDR 0.24%) e Recover.ai (FET 0.35%).
For the year, Render is already up a staggering 120%. Rendering is particularly attractive because it is part of a larger trend for artificial intelligence known as “GPU computing.” This refers to the immense computing power needed for advanced AI projects. And that’s what Render provides. Users pay in the Render token for access to decentralized GPU computing power located around the world. And This GPU computing power, as you might expect, is typically powered by Nvidia. For this reason Render has already been defined as “the Nvidia of cryptocurrencies”.
Fetch.ai, up 230% this year, is another bet on the future of artificial intelligence. Fetch.ai describes itself as an “open, permissionless, decentralized machine learning network with a crypto economy.” In short, it is both a marketplace and a platform where you can use the Fetch.ai token to pay for everything related to AI, from datasets to large language models (LLMs), as well as bots and AI agents.
From my perspective, Fetch.ai is particularly relevant for companies looking to advance their AI initiatives. Instead of starting from scratch, they can “reclaim” all the AI resources from one place. As a proof of concept, Fetch.ai recently partnered with Bosch AND Deutsche Telekom on a new AI platform for the sector.
Focus on the long term
As best as possible, investors should focus on the long term. If things go according to plan, the Bitcoin halving could kick off another growth cycle for blockchain and cryptocurrencies. So, focus on cryptocurrencies that are built for the long term.
Since layer 1 blockchain networks are the building blocks of the blockchain world, they likely have the greatest long-term appeal. And if you think AI has a bright and shining future ahead of it, then starting early with AI crypto tokens could pay off big later.
But remember: investing in any of these cryptocurrencies can be volatile and highly risky. Proceed with caution and always do your due diligence.
Domenico Basulto has positions in Bitcoin, Ethereum, Fetch, SUI and Solana. The Motley Fool has positions and recommends Avalanche, Bitcoin, Ethereum, Fetch, Nvidia, Render Token, and Solana. The Motley Fool has a disclosure policy.