Why We’re Adding These Two Coins to Our Crypto Portfolio

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The crypto chart isn’t looking exactly good for Bitcoin, and Ethereum right now. Bitcoin is currently 19.74% down from its recent all-time high. Well, it wasn’t just Bitcoin that went down but the entire market. Most sectors of the crypto market are yet to recover from the recent market dip.

Yet, two major sectors appeared to have survived the storm. I’m talking about the AI crypto and RWA sector. These sectors have been resilient amidst the market crash. So, today, I’ll be showing you three of the top-performing coins from each of these two narratives.

We don’t know when Bitcoin and the other guys will pick it up. But what we do know is that AI and RWA will play huge roles in this coming bull market. Most of the projects in this article are flying under the radar. So, getting in early could be to your advantage.

Sector 1: AI

AI was the biggest narrative of 2023. Many thought the whole AI thing was a fluke. Guess what? AI is still leading the scene. Most AI crypto projects outpaced Bitcoin in terms of growth in 2023. The combined market value of AI crypto projects surged to $26.4 billion, from just $2.7 billion last April. This is according to CoinGecko data.

AI crypto tokens are enjoying the bulk of the spotlight. Here’s the thing: most of these projects solve real-world problems across different industries. Unlike your typical cryptocurrencies, there’s real-world demand for AI projects. Most Web2 companies rely on the services of AI projects. So, there’s an active market for this asset class. In addition, the popularity of machine learning has increased the demand for AI crypto services. 

Microsoft recently announced plans to inject billions into the AI market. There’s huge potential within the AI crypto market. And that explains why this sector remained standing despite the recent dip. What does AI bring to the table?

AI helps crypto developers create better applications. Developers can now create more personalized apps. Projects like Ocean Protocol leverage AI to power their data marketplace. AI improves the data prediction market. Crypto analytical tools leverage AI to improve the accuracy of their predictions.

AI solves some of the biggest problems in Web3. For example, AI can improve scalability. Most projects leverage AI to automate smart contract auditing. Projects leverage AI for improved security. AI can help detect fraud and prevent security breaches. So, AI’s value isn’t speculative. There’s real demand and that’s why investors are betting on it. 

Investment manager VanEck believes revenue from AI crypto projects could exceed $51 billion in their bullish scenario by 2030. So, the AI market has real long-term potential.

AI Coins We Like

There are a few coins from this market that have performed well. We’ve talked about a couple of them in our previous videos. First on the list is the Render Protocol. Render currently ranks among the top 50 cryptos by market cap. Here’s the best part: Render has surged by 277.20% since last year. Render operates a marketplace that connects people with spare GPU resources with those that need them. And that’s a huge market. 

The next on our list is Fetch.ai. Fetch uses AI to help people automate their daily tasks. Fetch is currently the biggest AI crypto project by market cap. It is also seeing a lot of adoption outside the crypto space. More developers are integrating Fetch into their apps. And that’s good for FET’s price. 

Finally, we have the Akash network. Akash is a decentralized rival of Microsoft Azure. It runs an AI marketplace for computational resources. Akash has grown by 1601.45% since last year. Imagine what these numbers could be in the bull market. 

Sector 2: RWA

Real World Assets or RWA. The tokenization of these markets is a HUGE and fast-growing sector. The US Stock Market is $53 trillion. The global Real Estate market is almost $4 trillion. The US Treasury Market is $27 trillion. Almost $100 trillion in assets in those 3 markets alone.

How much of this market needs to be tokenized by Web3 projects to be successful? Just 1% is $1 trillion. Do you know how many trillion-dollar assets we have in crypto? One. Just Bitcoin. BlackRock is getting in on this action too. They just led a funding round in Securitize while also striking a partnership with Ondo Finance. More on Ondo in a second.

Why does RWA On-chain Matter?

So you might wonder if these markets are so huge, why don’t they just stay in TradFi? Why do they come over to crypto and Web3? And the answer to that is a combination of things

  1. Access: More people have more access to tokenized US real estate at a fractional price than can pay for a $300,000 home. So more people around the world have more access to more investment choices.
  2. People aren’t “trapped” by their citizenship: Related to access, just because your government leaders don’t get along with mine doesn’t mean you shouldn’t be able to buy an asset in my country. If you want to buy it, that is. Web3 is transnational. It’s for everyone, everywhere.
  3. Middlemen like investment brokers, banks, and others are providing little added value in TradFi. And now, people know it and want more decentralized solutions.

An asset issuer can do all this while being compliant and knowing the encryption from blockchain keeps transactions and users safe. There are even financial appchains now online only to do financial transactions on-chain.

RWA Coins We Like

So back to Ondo, not only due to the BlackRock news, they are one of the first to tokenize securities. They started with US Treasuries. No surprise there given how big that market is. Individuals can earn 5.2% on US Treasuries even if they are not Americans. Pretty cool.

Another project we like in RWA is Goldfinch. They are doing decentralized lending by creating lending pools with specific objectives. This way you can decide which ones fit your risk level. For example, you can lend your USDC into the general pool and earn 7.6%. Other pools currently sold out include:

  • An Emerging SE Asia pool and
  • A Latin American Sustainability Pool.

24 pools have been paid off in full already. In terms of projects doing RWA, Goldfinch is one of the leaders. One last RWA project we like is Pendle. While best known for liquid staking Ethereum, Pendle also has a yield tokenization element where you can separate the principal from the yield in any asset. While currently only doing native crypto assets, it won’t take long before Pendle starts tokenizing real-world assets, too.

The opportunity here is just too enormous to ignore. Trillions and trillions of dollars are stuck in TradFi with terrible intermediaries. Crypto and Web3 are coming for them. And they know it. It’s only a matter of time.

Coins

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.

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