AI and Crypto: The Next Big Opportunity in the Bull Run? (Plus My Top 3 Picks)
As we move into 2025, the combination of AI and crypto might just be the most exciting sector to watch. While the buzz has been building for some time, the recent hype around the Terminal of Truth could be the spark that ignites the next big wave.
At present, we’re seeing early signs of AI’s growing momentum in crypto, but the real potential may still be on the horizon. If you’re looking for the sector that could drive the next bull run, AI is one you should definitely keep an eye on. Here’s a breakdown of the key factors:
Why AI is the Opportunity of the Decade
The global AI market is expanding rapidly, having already made a significant impact on various aspects of our lives. Between 2023 and 2024, the AI market grew by an impressive $50 billion. With a projected compound annual growth rate (CAGR) of 28.5%, AI is expected to surpass $826 billion by 2030.
If decentralized AI captures just a fraction of this market, it could be worth $600 billion, and with a 2x speculative premium, the sector's value could reach $1.2 trillion. Despite these strong growth signals, AI remains underrepresented in the crypto market, ranking just 34th in market cap, far behind sectors like DeFi and meme coins. However, AI has captured a significant portion of the crypto community’s attention, accounting for almost a third of the space’s focus. This gap presents a massive opportunity. If AI rises to the top 5-10 sectors, many mid- and low-cap AI tokens could see 5-10x growth in a short time.
My Bullish View on AI x Crypto
As I discussed in a recent interview with Solana’s president, the integration of AI with blockchain technology presents immense potential for both sectors. This synergy could drive rapid innovation and widespread adoption.
Several factors support my belief that AI and crypto will experience significant growth:
AI’s Ubiquity: AI is now a part of everyday life, sparking excitement and curiosity across all sectors. This ensures continued public interest and engagement.
Constant Innovation: The AI field evolves quickly, with new breakthroughs consistently making headlines, fueling market interest.
Crypto’s Accessibility: Crypto offers a lower barrier to entry compared to traditional equities, making it an attractive option for retail investors seeking exposure to AI’s growth.
AI Agents: AI agents are revolutionizing sectors like DeFi, trading, and risk management, with AI autonomously managing portfolios on-chain—a glimpse into the future of crypto.
Mainstream AI Adoption: Major companies like Adobe and Expedia are integrating AI into their operations, which increases scalability and utility across industries and drives investment in AI infrastructure.
The AI x Crypto Landscape
AI and crypto intersect across several verticals, each with high growth potential:
AI Agents and Infrastructure: Tools that interact with blockchain protocols, enabling decentralized applications to scale.
Computation and DePIN: Providing the infrastructure to support AI models and decentralized networks.
Decentralized LLMs (Large Language Models): Secure, scalable AI models hosted on decentralized networks.
AI-Specific Blockchains: Protocols designed to support AI applications, improving efficiency and usability for developers.
A Look at My AI Crypto Portfolio
I’ve been building a diversified AI crypto portfolio for several months, which includes 10-12 coins across the sectors mentioned above. Here are my top 3 picks:
$TAO (Bittensor): A leader in decentralized AI research, $TAO has expanded its potential with EVM compatibility, enabling it to integrate with DeFi ecosystems.
$NEAR (Near Protocol): A top Layer 1 blockchain with strong scalability, $NEAR has proven its reliability since launching its mainnet in 2020.
$DEAI (Zero1 Labs): Focused on secure data governance with Fully Homomorphic Encryption (FHE), $DEAI offers strong upside potential with a market cap of around $76 million.
Final Thoughts
The convergence of AI and crypto is just beginning, and with its massive total addressable market (TAM), constant innovation, and increasing accessibility, this sector could define the next bull run. By focusing on key infrastructure projects and staying ahead of market trends, there’s significant potential for outsized returns.
What do you think about AI’s role in crypto’s future? Let me know your thoughts!
