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Bitcoin Halving Will Make These Cryptocurrencies Skyrocket
In the aftermath of the April halving, Bitcoin (CRYPTO: BTC) has naturally been the center of attention among crypto investors. Bitcoin has historically rallied at the start of a halving cycle, and investors view the current period as a fantastic time to buy Bitcoin before it potentially goes parabolic.
But don’t forget altcoins. These also tend to work very well after any Bitcoin halved, given that a rise in the price of Bitcoin tends to cause the entire crypto market to rise. As they say, a rising tide lifts all boats. With that in mind, here’s a closer look at a handful of cryptocurrencies whose value could skyrocket in 2024.
Layer 1 blockchain networks
As a starting point, let’s consider layer 1 blockchain networks. These include large market cap names such as Ethereum (CRYPTO: ETH), SolanaAnd avalancheas well as a handful of smaller, nimbler competitors such as Aptos And Sui. All of these coins currently rank among the top 50 cryptocurrencies by market capitalization, with Ethereum being the undisputed market leader with a whopping valuation of $460 billion.
The reason these layer 1 blockchains have a good chance of outperforming the market is because they are the building blocks of the blockchain economy. Think about any key blockchain niche, like decentralized finance (DeFi), non-fungible tokens (NFT), gaming, or the metaverse. All of these are built on layer 1 blockchains. As a result, any crypto bull market rally could cause all of these segments to rise simultaneously. The breakout could be huge, given the collapse of some of these sectors during the “crypto winter” of 2022.
While there are many options here, my personal preference is with just three of these layer 1 blockchains: Ethereum, Solana, and Sui. Ethereum is the 800 pound gorilla in this space. Solana is a highly touted “Ethereum killer.” And Sui is the “Solana Killer”. So you can invest in the market leader or a promising rival. The choice is yours.
AI crypto tokens
Typically, Bitcoin halving leads to what crypto investors call “altcoin season.” As investors seek higher returns, they begin to accept more risk. This is when small, little-known cryptocurrencies can explode out of nowhere and significantly outperform Bitcoin.
Image source: Getty Images.
If you have a high appetite for risk, you may want to consider AI crypto tokens. Simply put, these are cryptocurrencies that are heavily leveraged by the current artificial intelligence boom. With that in mind, my top two picks here are Give back (CRYPTO: RNDR) and Recover.ai (CRYPTO: FET).
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For the year, Render is already up 120%. The rendering is particularly appealing because it’s part of a broader trend in artificial intelligence known as “GPU Compute.” This refers to the immense computing power needed for advanced AI projects. And that’s what Render offers. Users pay with the Render token to access decentralized GPU computing power located anywhere in the world. And this GPU computing power, as you would expect, is usually powered by Nvidia. For this reason, Render has already been dubbed “the Nvidia of crypto.”
Fetch.ai, up 230% for the year, is another bet on the future of AI. Fetch.ai bills itself as an “open, permissionless, decentralized machine learning network with a crypto economy.” In short, it’s both a marketplace and a platform where you can use the Fetch.ai token to pay for anything related to AI, from datasets to large language models ( LLM), including robots 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 “grab” all of their 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 industry.
Focus on the long term
Where possible, investors should focus on the long term. If things go as planned, the Bitcoin halving could spark a new growth cycle for blockchain and crypto. So focus on cryptos designed for the long term.
Since layer 1 blockchain networks are the building blocks of the blockchain world, they arguably have the greatest long-term appeal. And if you think AI has a bright and shiny future, then getting into AI crypto tokens early could pay off big later.
But remember: investing in any of these cryptocurrencies can be volatile and very risky. Proceed with caution and always do your due diligence.
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Dominique Basulto has positions in Bitcoin, Ethereum, Fetch, SUI and Solana. The Motley Fool holds positions and recommends Avalanche, Bitcoin, Ethereum, Fetch, Nvidia, Render Token, and Solana. The Mad Motley has a disclosure policy.
Prediction: Bitcoin Halving Will Make These Cryptocurrencies Skyrocket was originally published by The Motley Fool