In a world where technology continuously evolves, the intersection of artificial intelligence (AI) and cryptocurrency offers unprecedented opportunities. Miles Deutscher, a renowned crypto analyst with an impressive following of over 575,000 on X (formerly known as Twitter), has shed light on ten AI altcoins that are predicted to see significant growth by 2025. Deutscher considers this potential growth as perhaps “the biggest opportunity of the bull run.”
Why AI Offers A Lot Of Potential
Deutscher emphasizes the rapid growth of the global AI market, which expanded by approximately $50 billion between 2023 and 2024. With a projected compound annual growth rate (CAGR) of 28.46%, experts estimate the market could exceed $826 billion by 2030. Despite AI’s significant presence in public conversation, it surprisingly ranks as the 34th largest crypto sector by market capitalization, trailing behind sectors like liquid staking, memecoins, and decentralized finance (DeFi).
The Disparity and Opportunity
This gap, according to Deutscher, presents a massive opportunity for investors. Many mid to low cap AI tokens remain at low valuations, and a strong market rotation towards AI could potentially reprice these tokens five to ten times higher. Deutscher explains that AI’s societal impact is becoming increasingly apparent, capturing the attention of people globally, thus cementing its place in the public consciousness.
Innovation and Accessibility
AI continuously innovates, with new products regularly entering the market, which in turn increases attention on the sector. In the crypto world, this heightened attention translates into speculation. Moreover, investing in crypto provides a lower barrier to accessing the AI growth sector compared to traditional AI equities, making it particularly attractive to retail investors.
The Rise of AI Agents
Recent developments have highlighted the power of AI integrated with crypto, particularly with the rise of AI agents. These agents can autonomously trade on-chain, manage portfolios, and optimize DeFi strategies, potentially revolutionizing the crypto landscape. Major traditional tech companies such as Adobe and Expedia are also integrating AI agents into their operations, further validating this trend.
Focusing on the AI and Crypto Landscape
Deutscher has concentrated his investments across various verticals within the AI and crypto landscape, with particular emphasis on AI agents and AI infrastructure. Rather than focusing on individual AI agents or broader decentralized physical infrastructure networks (DePINs), he is strategically investing in “pick-and-shovel” infrastructure protocols. Deutscher holds positions in all the projects he mentions, some of which he is involved with as a strategic advisor and investor.
Top 10 AI Altcoins
Deutscher’s top ten AI altcoins, ranked from largest to smallest market capitalization, are as follows:
Bittensor (TAO)
As the AI market leader, Bittensor focuses on decentralizing AI research and has gained significant traction in scientific circles. With the recent implementation of Ethereum Virtual Machine (EVM) compatibility, the network has broadened its potential for developers to build DeFi ecosystems and unlock new applications.
NEAR Protocol (NEAR)
Recognized as the leading Layer 1 (L1) blockchain intersecting with AI, NEAR Protocol serves as a robust proxy for those optimistic about both sectors. Since its mainnet launch in October 2020, NEAR has maintained an impressive 100% uptime.
Grass (GRASS)
Grass stands out this cycle due to its data pipeline that seamlessly connects the real world with AI and crypto. By utilizing crypto incentives, Grass creates a data pipeline that is otherwise inaccessible to most AI companies, positioning itself as a valuable commodity.
Spectral (SPEC)
As a leading AI agent infrastructure play, Spectral allows users to deploy and engage with AI agents. With Syntax V2, users can interact with sentient agents possessing personalities, trading on Hyperliquid based on community input—a unique mix of fun, collaboration, and speculation.
Mode Network (MODE)
While known as a Layer 2 (L2) solution, Mode Network has been developing AI technology for over a year. It leads the future of DeFi by facilitating the deployment of AI-driven agents that autonomously farm yield and optimize portfolios.
NeuralAI (NEURAL)
NeuralAI integrates AI and gaming—two of the largest drivers of crypto adoption. They recently unveiled SentiOS, which offers autonomous AI to create, populate, and animate virtual worlds and economies.
PinLinkAi
As an advisor and investor, Deutscher is closely involved with PinLinkAi, the first real-world asset-tokenized DePIN platform that enables fractional ownership of yield-bearing assets. With recent partnerships with leading industry players, their business development is notably advanced.
Zero1 Labs (DEAI)
Zero1 Labs empowers innovators to build decentralized AI applications with fully homomorphic encryption, ensuring secure data governance and privacy. With a market cap of around $76 million, it represents one of Deutscher’s higher upside AI bets.
Empyreal
Empyreal offers AI infrastructure that transforms social media messages into on-chain actions such as trades and swaps through their Simulacrum platform, showcasing the potential of AI agents.
enqAI (ENQAI)
EnqAI is a decentralized large language model network addressing bias and censorship issues in centralized AI. Despite its $20 million market cap, it boasts a diverse user base across 50-plus countries, having processed over one million API requests with minimal downtime.
Bonus: Guru Network (GURU)
As an advisor and investor, Deutscher is also involved with Guru Network, which powers AI processors and chatbots through a decentralized exchange, stablecoin support, and base chain integration. With its Layer 3 mainnet now live, Guru is poised to enhance DeFi solutions on platforms like Telegram.
Investment Insights and Risk Management
Deutscher stresses the importance of risk management, revealing that his portfolio balance consists of approximately 70% large caps and 30% small to mid caps. He advises conducting thorough research and managing position sizing and risk according to personal goals and strategies.
As of the latest update, TAO was trading at $630.80.
