From Layer 1 blockchain networks to AI cryptographic tokens, the value of these cryptocurrencies could skyrocket following the Bitcoin halving.

After the April halving, Bitcoin (Bitcoin -0.42%) has understandably been the center of attention for crypto investors. Bitcoin has historically rallied in the early stages of a halving cycle, and investors view the current period as a fantastic time to buy Bitcoin before it potentially goes parabolic.

But don’t forget altcoins. These also tend to work very well after any Bitcoin halved, as the rise in the price of Bitcoin tends to lift the entire crypto market. As they say, a rising tide lifts all boats. With that in mind, here’s a closer look at some cryptocurrencies that could skyrocket in value in 2024.

Layer 1 blockchain networks

As a starting point, consider Layer 1 blockchain networks. These include large market cap names such as Ethereum (ETH -2.19%), SolanaIt is Avalancheas well as a handful of smaller, nimbler competitors such as Apartments It is Sui. All of them are currently among the top 50 cryptocurrencies in terms of market capitalization, with Ethereum being the market leader with a whopping $460 billion valuation.

The reason these Layer 1 blockchains have a good chance of outperforming the market is that they are the building blocks of the blockchain economy. Think of any key blockchain niche – like decentralized finance (DeFi), non-fungible tokens (NFTs), gaming, or the metaverse. All of this is built on top of Layer 1 blockchains. As a result, any crypto market rally could lift all of these segments simultaneously. The disruption could be tremendous given how battered some of these sectors were during the “crypto winter” of 2022.

While there are many options here, my personal preference is for just three of these Layer 1 blockchains: Ethereum, Solanaand Sui. Ethereum is the 800-pound gorilla in this space. Solana is a much-touted “Ethereum killer”. And Sui is the “Solana killer”. Therefore, you can invest in the market leader or an emerging rival. It’s your choice.

AI cryptographic tokens

Typically, the Bitcoin halving leads to what crypto investors call “altcoin season.” As investors seek higher returns, they begin to accept more risk. This is when small, little-known cryptocurrencies can explode seemingly out of nowhere and dramatically outperform Bitcoin.

Image source: Getty Images.

If you have a high appetite for risk, then you might consider AI crypto tokens. Simply put, these are highly leveraged cryptocurrencies for the current boom artificial intelligence. With that in mind, my top two picks here are Render (RNDR -2.00%) and Search.ai (FET -6.43%).

In the year, Render has already risen an impressive 120%. Rendering is particularly compelling because it’s part of a larger artificial intelligence trend known as “GPU Computing.” This refers to the immense computing power required for advanced AI projects. And that’s what Render offers. Users pay in the Render token for access to decentralized GPU computing power located around the world. And that computing power GPU, as you would expect, is typically powered by Nvidia. For this reason, Render has been called “the Nvidia of cryptography”.

Fetch.ai, up 230% this year, is another bet on the future of AI. Fetch.ai refers to itself as a “decentralized, open, permissionless machine learning network with a cryptographic economy.” In short, it’s a marketplace and platform where you can use the Fetch.ai token to pay for everything AI-related, from datasets to large language models (LLMs), as well as AI bots and agents.

From my perspective, Fetch.ai is particularly relevant for companies looking to advance their AI initiatives. Instead of starting from scratch, they can “search” all of their AI capabilities in one place. As a proof of concept, Fetch.ai recently partnered with Bosch It is Deutsche Telekom on a new AI platform for the industry.

Focus on the long term

As best as possible, investors should stay focused on the long term. If things go according to plan, the Bitcoin halving could usher in yet another round of growth for blockchain and crypto. Therefore, focus on cryptocurrencies built for the long term.

Since Layer 1 blockchain networks are the building blocks of the blockchain world, they arguably have the greatest long-term appeal. And if you think AI has a bright future ahead, then starting early with AI crypto tokens can pay off big later.

But remember: investing in any of these cryptocurrencies can be volatile and highly risky. Proceed with caution and always do your own due diligence.

Dominic Basulto has positions in Bitcoin, Ethereum, Fetch, SUI and Solana. The Motley Fool has positions and recommends Avalanche, Bitcoin, Ethereum, Fetch, Nvidia, Render Token, and Solana. The motley fool has a disclosure policy.

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