Miles Deutscher, a well-known crypto analyst with a substantial following of over 575,000 on X (formerly Twitter), has identified ten artificial intelligence (AI) altcoins he anticipates will experience considerable growth by the year 2025. In his recent insights, Deutscher pointed out the expanding potential of the AI sector within the overarching cryptocurrency market, positioning it as potentially “the biggest opportunity of the bull run.”
The global AI market is witnessing significant growth, having increased by approximately $50 billion from 2023 to 2024, with projections indicating a compound annual growth rate (CAGR) of 28.46%. This could lead the market to exceed $826 billion by 2030. Despite AI’s prominence in public discussions—capturing nearly a third of attention within the crypto arena—it currently occupies the 34th position in the crypto market capitalisation rankings, lagging behind sectors such as liquid staking and decentralised finance (DeFi). “Yet, AI is still only the 34th ranked crypto sector by market cap, behind liquid staking, dog memes, DeFi, and more. I could easily see AI as a top 5-10 sector in a year’s time,” Deutscher remarked.
Deutscher underscores the considerable opportunity this disparity presents for investors, pointing out that many mid to low-cap AI tokens are still valued relatively low. He remarked, “All it takes is a strong rotation into AI for many of these to quickly reprice 5-10x higher.” He provided several reasons for his optimistic outlook on AI cryptocurrency. Firstly, he noted a growing public awareness of AI and its potential societal impacts, with people feeling a variety of emotions towards its developments. “Either people are scared, excited, or intrigued by the latest developments. This already cements AI in general in the minds of the masses,” he stated.
Secondly, Deutscher highlighted the ceaseless innovation within the AI sector, with new products regularly entering the market. He pointed out that this constant evolution brings increased focus to the sector, noting, “More eyeballs equals more speculation.” Furthermore, he stated that cryptocurrencies offer more accessible exposure to the growth of AI, being generally easier to access and afford than traditional AI stocks. He added, “For retail, this is a massive benefit.”
Additionally, he highlighted the increasing prominence of AI agents that integrate with cryptocurrencies, predicting a transformative shift in the landscape. “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 anticipated. He also noted that this trend is reflected in the tech sector, where companies like Adobe and Expedia are adopting AI agents into their operations.
Within the AI and cryptocurrency landscape, Deutscher is diversifying his investments, with a focus on AI agents and the infrastructure supporting them. He is prioritising “pick-and-shovel infrastructure protocols” over individual AI agents or broader decentralised physical infrastructure (DePIN) initiatives, indicating he has positions in all the projects he mentions, some of which he is involved with as a strategic advisor.
The list of Deutscher's top ten AI altcoins, arranged by market capitalisation from largest to smallest, includes:
Bittensor (TAO) - Described as the leader in AI markets, focusing on decentralised AI research and enjoying significant academic adoption. Deutscher cited a recent rollout of EVM compatibility as a positive development for the network.
NEAR Protocol (NEAR) - Identified as a leading Layer 1 blockchain intersecting with AI. Deutscher remarked on its impressive uptime since launching its mainnet in October 2020.
Grass (GRASS) - Gaining recognition for its data pipeline connecting the real world with AI and crypto, Deutscher acknowledged its potential in a world where data is incredibly valuable.
Spectral (SPEC) - Noted for its AI agent infrastructure which allows user engagement with AI agents. Deutscher described its Syntax V2 update positively, highlighting the interactive aspect of the agents.
Mode Network (MODE) - Although primarily a Layer 2 solution, it has been developing AI technology for over a year. Deutscher stated its capability of autonomously managing portfolio optimisation.
NeuralAI (NEURAL) - Connecting AI and gaming elements in crypto, the project recently announced SentiOS, which facilitates the creation of virtual economies.
PinLinkAi - Deutscher is actively involved here, as an advisor and investor. This project enables the fractional ownership of yield-bearing assets through tokenisation.
Zero1 Labs (DEAI) - In which he serves as a strategic advisor and investor, enables the creation of decentralised AI applications secured through advanced encryption.
Empyreal - Also a project where Deutscher is an advisor and investor, it focuses on turning social media content into actionable trades and swaps on-chain.
enqAI (ENQAI) - Another one of Deutscher's investments, aimed at developing a decentralised large language model network to combat bias and censorship inherent in centralised systems.
In addition to the primary list, Deutscher mentioned Guru Network (GURU), where he serves as an advisor and investor. The project has launched its Layer 3 mainnet, providing a foundation for various AI applications.
Deutscher stressed the significance of risk management in investment strategies, revealing a portfolio distribution of approximately 70% large-cap cryptocurrencies and 30% smaller and mid-cap tokens. He advised prospective investors to conduct thorough research and manage risks aligned with individual investment goals. At the time of reporting, Bittensor (TAO) was trading at $630.80.
Source: Noah Wire Services