Altcoins are generating a lot of buzz with a 7.9% rise in market capitalization, while Bitcoin’s price has remained flat. As a result, Bitcoin’s dominance has fallen to 58.54%. Meanwhile, AI tokens are outperforming most meme coins, with several, like Bittensor, seeing gains of over 20%.
Bittensor, for example, surged 20% thanks to the excitement around its new Ethereum Virtual Machine (EVM) compatibility.
As Bitcoin takes a pause, the AI sector continues to attract attention. OpenAI recently secured $1.5 billion in funding, despite facing a major data leak, while Talus Network hit a $150 million fully diluted valuation.
These developments show how AI is becoming a major area of focus, with decentralized AI in particular showing strong growth potential.
Analysts believe AI’s total addressable market (TAM) could exceed $12 trillion in the next 6-7 years. Even if decentralized AI captures just 5% of this, it would be worth around $600 billion. With speculative premiums, the sector could grow to a $1.8 trillion market cap, making it one of the key areas to watch.
Miles Deutscher, a leading crypto analyst, has identified several altcoins in the AI and crypto sectors with strong potential. Here are his top picks:
Bittensor (TAO) is leading the way by decentralizing AI research. Its recent integration with Ethereum makes it a strong candidate for decentralized finance (DeFi) applications. Deutscher recommends buying it during market dips as it’s a solid investment for those looking to get involved in AI.
NEAR Protocol (NEAR) rose 17% this week after partnering with Deutsche Telekom to help validate transactions on its blockchain. With $243 million in total value locked (TVL) and its innovative use of AI, NEAR is becoming an exciting player in both AI and blockchain development. It is also working on a 1.4 trillion-parameter AI model, which could further boost its growth.
Grass (GRASS) connects real-world data with AI and crypto, which positions it well as demand for valuable data continues to grow. Its unique approach makes it an interesting project to watch in both the AI and crypto sectors.
Spectral Labs (SPEC) is changing the space with autonomous AI agents that can operate on the blockchain. These agents can automate tasks like trading and decision-making. Similarly, Mode Network is using AI to create tools that automate crypto investment management, adding a new layer of innovation to the DeFi space.
Deutscher also points out Bitcoin’s growing dominance since April 2023, which is often a sign that a new market cycle is starting. When Bitcoin leads the way, its rising price often sparks interest in altcoins, triggering an altseason where altcoins begin to gain momentum.
With AI’s rapid evolution, the altcoin market is evolving faster than ever—get ready for what’s next.
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