When it comes to crypto, some people like to only invest in Bitcoin. And that’s fine; there are many advantages to that strategy. But for those who also like to invest in altcoins, there are a few basics you should be aware of.
Understanding The Altcoin Market
The altcoin market generally rotates through various “narratives,” i.e., popular topics and trends that last for a few months and then dwindle down. Examples of crypto narratives include DeFi, gaming, Layer 1’s, Layer 2’s, AI (Artificial Intelligence), DePin (Decentralized Physical Infrastructure), Memecoins, and so on.
It’s important to keep an eye out for the upcoming narratives and to identify them before the masses do, or at least, not after the masses do. One of the most important signs of a new narrative is that the narrative leaders outperform the rest of the crypto market. A narrative leader is one of the largest coins in any given sector. For example, Dogecoin and Shiba Inu are narrative leaders for memecoins, since they are the largest coins in the memecoin category. By keeping an eye on those two projects, you can fairly reliably assess whether the memecoin narrative is heating up.
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The A.I. Crypto Narrative
I’m writing this article today to tell you about the narrative that is heating up right now, so you can be ahead of the market. The narrative is AI (Artificial Intelligence).
Bittensor ($TAO): The Narrative Leader
The narrative leader in this category is Bittensor Tao ($TAO). This large project is a decentralized network of AI computing power driven by hardware called GPU’s (graphics processing unit). GPU’s are famously manufactured by the massive company known as NVIDIA, and GPU’s can be used to either process AI tasks or to mine crypto – making these hardware very well known in crypto communities.
$TAO, a crypto project using GPU’s to process AI tasks for a decentralized marketplace, just saw a meteoric rise from about $275 per coin to about $550 per coin, where the price sits now. Based on our logic of keeping an eye on narrative leaders, we can state confidently that this $TAO move just kicked off a new altcoin run for crypto coins in the AI narrative.
A person could simply invest in $TAO to take advantage of this narrative, or they could choose to wade into the waters of smaller altcoins in the AI narrative. I personally do a bit of both – I like holding $TAO and other large-cap AI projects, as well as delving into small-cap AI projects in this narrative.
Commune AI ($COMAI): A Mid-Cap AI Project
One mid-cap AI project that I really like is called Commune AI ($COMAI). Currently, it has a fully diluted market cap of $300M. It is a fairly new project and is still priced low enough that it would require a 10x run for it to reach prior all-time highs from earlier this Spring, giving it a long runway of potential price increases (in my opinion, always do your own research). $300M market cap is a mid-cap, meaning it is middle-of-the-road in size, compared to $TAO which is in the billions in market cap or compared to small caps which can be as small as $1M or less.
Human AI ($PRNT): A Small Cap AI Project
I recently became an advisor for a small crypto project called HAAI, which stands for Human AI, and I am also very excited about what they are building. The token symbol is $PRNT, and this project was founded by a PhD researcher who is building many kinds of AI tools both in Web 2 as well as Web 3. This is an example of a very small-cap crypto project, so be aware that these smaller options carry more risk since they are less established, but I am providing this information for anyone interested in doing their research here.
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Prominent Endorsements for AI Cryptos
One of the reasons that AI has kicked off as a hot narrative is that several very high-profile folks have mentioned AI and specifically $TAO recently, including Elon Musk himself, who made a few Tweet replies to the $TAO Twitter page itself. As one can imagine, this would definitely be a catalyst for $TAO and the AI narrative.
Kamala Harris herself also mentioned in a recent statement that she “supports the further development of digital assets and AI,” which was quite an amazing statement coming from a US Presidential Candidate. That statement also contributed to the big rise in $TAO price that we saw recently.
The Future Of The AI Narrative
How long will the AI narrative last? No one knows. It could be as short as a few weeks, or last until the end of the current crypto bull run. I’ll be sure to keep everyone updated in my next article, and thanks for reading.
Thirsty for more? Get insights into ‘Where The Crypto Market is Headed In Q4 of 2024’ here
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