As a seasoned crypto enthusiast with years of experience under my belt, I find myself constantly on the lookout for projects that stand out from the crowd. When I stumbled upon this list compiled by the esteemed analyst Deutscher, I was immediately intrigued. His extensive knowledge and knack for spotting promising projects are evident in his selections.
Miles Deutscher, a well-known crypto expert with approximately 575,000 followers on social media platform X (previously known as Twitter), has revealed his top ten AI-related altcoins predicted to see substantial growth by the year 2025. Highlighting the promising future of artificial intelligence within the cryptocurrency market, Deutscher expresses that this could represent “an exceptional opportunity during the bull run.
Why AI Offers A Lot Of Potential
Deutscher underscores the swift increase of the worldwide AI market, observing an approximate $50 billion increase from 2023 to 2024. Experts project a compound annual growth rate (CAGR) of 28.46%, placing it at a potential value of over $826 billion by 2030. While AI is a hot topic, accounting for nearly one-third of attention in the crypto sphere, it currently ranks as the 34th largest crypto sector by market capitalization, lagging behind sectors such as liquid staking, memecoins, and decentralized finance (DeFi). However, Deutscher believes that AI could potentially move into the top 5-10 crypto sectors within a year’s time.
He argues that this disparity presents a massive opportunity for investors. “Many mid-low cap AI tokens are still sitting at ridiculously low valuations. All it takes is a strong rotation into AI for many of these to quickly reprice 5-10x higher,” he explained. Deutscher outlines his fundamental thesis for why AI crypto is set for substantial growth. Firstly, he notes that everyone is becoming aware of how impactful AI will be on society. “Either people are scared, excited, or intrigued by the latest developments. This already cements AI in general in the minds of the masses,” he said.
In second point, he emphasizes that AI technology is consistently advancing, regularly introducing new items in the market. As a result of each new AI product launch, the sector gains even more significance. Notably, crypto thrives on attention, so increased interest translates to more speculation, Deutscher noted.
Finally, he highlights the recent rise of AI agents, which has made people aware of the power of AI integrated with crypto. “We’re moving into a future where AI agents will trade autonomously on-chain for you, manage your portfolio and risk, DeFi, and more. It’s going to completely change the landscape of crypto,” Deutscher predicted. He also notes that this trend is occurring in traditional tech sectors, with corporations like Adobe and Expedia integrating AI agents into their operations.
In the realm of artificial intelligence (AI) and cryptocurrency, Deutscher highlights his investment strategy that spans multiple sectors, but places special focus on AI agents and the underlying infrastructure for AI. He’s more interested in “protocols providing essential infrastructure,” rather than individual AI agents or broader DePIN plays as a whole. Furthermore, he openly declares that he owns stakes in all the projects he discusses, some of which are in roles such as strategic advisor and investor.
Top 10 AI Altcoins
The ten leading AI-related cryptocurrencies by Deutscher, listed in descending order according to their total market value, are presented below.
Leading off the list is Bittensor (TAO), referred to as the pioneer in AI by Deutscher. This platform emphasizes decentralizing artificial intelligence research and has experienced substantial acceptance within scientific circles. Notably, with its recent introduction of EVM compatibility, it has made significant strides forward, enabling developers to construct DeFi ecosystems and explore new applications.
The second contender is the NEAR Protocol (NEAR) , which he considers as the prime Layer 1 (L1) blockchain that bridges with Artificial Intelligence. “For those optimistic about both sectors, NEAR provides a robust representation. An interesting tidbit: Since its mainnet debut in October 2020, it has consistently maintained a 100% uptime,” he noted.
Third is Grass (GRASS), an exceptional launch this cycle, as it boasts a unique data pipeline that effortlessly links the real world with AI and cryptocurrency. “Recent advancements in AI have made data one of the most precious resources globally. Grass leverages cryptocurrency rewards to establish a data pipeline that many other AI companies cannot access,” he clarified. He further stated that the appeal for the Grass network is unquestionable, and its future prospects appear incredibly bright.
4th is Spectral (SPEC), one of the top AI agent infrastructure options available, enabling users to easily deploy and converse with AI agents. As Syntax V2 advances, you’ll have the opportunity to engage with intelligent agents that possess unique personalities and trade on Hyperliquid based on community input. This combination of entertainment, collaboration, and speculation is intriguing, according to Deutscher’s perspective.
Fifth is referred to as MODE Network (MODE), a Layer 2 (L2) solution that has been delving into AI technology for more than a year now. As he put it, “They are pioneering the future of Decentralized Finance (DeFi) by enabling the deployment of intelligent agents powered by AI. These agents will autonomously manage yield farming and fine-tune your portfolio to optimize returns for you.
Sixth on the list is NeuralAI (NEURAL), bridging AI and gaming – two key areas driving crypto adoption. As Deutscher stated, they recently unveiled SentiOS, a system that provides autonomous AI to build, fill, and animate virtual worlds and economies.
Seventh in line is PinLinkAI, a company where Deutscher serves as a strategic consultant and financial backer. PinLinkAI operates the DePIN platform, which is the first to tokenize real-world assets, facilitating fractional ownership of income-generating assets, whether physical or digital. He commended their partnerships with Akash, Pendle, FetchAI, OpenSea, Alephium, ParallelAI, and others, stating that their business growth is remarkable.
The eighth venture is Zero1 Labs (DEAI), a project where he acts as both strategic advisor and investor. Zero1 Labs empowers innovators to construct decentralized AI applications using fully homomorphic encryption, ensuring secure data management and absolute privacy. In simpler terms, it’s like an infrastructure play for AI. With a market cap of approximately $76 million, this is one of his ‘higher upside’ AI investments that Deutscher mentioned. He also highlighted the launch of Seraphnet, the first project to emerge from their incubator, hinting at more projects to follow.
I, as an analyst, am involved with a project called Empyreal, where I serve both as an advisor and investor. This venture particularly excites me due to its focus on AI agents. Notably, Empyreal offers AI infrastructure that enables the transformation of social media messages into on-chain activities such as trades and swaps through their platform known as Simulacrum. In my opinion, it’s incredibly innovative.
EnqAI (ENQAI) is another project that Deutscher contributes to as an advisor and investor. This decentralized network of large language models addresses the problems of bias and censorship often associated with centralized AI systems. Notably, EnqAI boasts 20,000 monthly active users across more than 50 countries and has successfully managed over a million API requests with minimal disruptions or delays, according to Deutscher.
In addition, Deutscher highlights the Guru Network (GURU), where he serves as both an advisor and investor. Currently operational at Layer 3, this network empowers AI processors and chatbots through a decentralized exchange, offering stablecoin support, bridges, and base chain integration. He’s been involved in creating a mini-app for Telegram and Discord, providing a comprehensive DeFi solution on Telegram. He’s really excited about it, calling it “very cool!
German underscores the significance of effective risk management. He shares that his personal portfolio allocation is roughly 70% large-cap stocks and 30% small to mid-cap stocks. “I suggest you conduct your own investigation, and if you choose to invest in any of these protocols, ensure to manage position sizing and risk according to your objectives and overall strategy,” he suggested.
At press time, TAO traded at $630.80.
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2024-11-29 20:11