If you are looking for ways to diversify your crypto portfolio, it might be worth looking beyond just Bitcoin and Ethereum. While these two cryptocurrencies may attract all the investor attention, there are many cryptocurrencies that remain off the radar and could see a sharp price increase in 2025, writes nasdaq.com.
The list of promising investment targets is compiled with a market capitalization limit of $5 billion. This limits the selection to only 30 different cryptocurrencies. Subsequently, the list was narrowed down to three that could outperform both Bitcoin and Ethereum by 2025.
Although Solana (CRYPTO: SOL) has been around for several years, it is just now starting to break into the mainstream and attract institutional investor attention. Solana is currently among the top five cryptocurrencies by market capitalization, and in terms of performance this year, it has not lagged behind Bitcoin. Over the year, Bitcoin has grown by 143%, and Solana by 140%.
Currently, there is talk that Solana will be the next cryptocurrency to receive a spot ETF. If this happens, the price of Solana could rise sharply in 2025. As demonstrated by the examples of spot Bitcoin ETFs (and, to a lesser extent, spot Ethereum ETFs), the creation of an ETF investment product can lead to a wave of new money flowing into this cryptocurrency.
Furthermore, Solana seems to be running at full throttle right now. It has become the main competitor to Ethereum and may have greater long-term growth potential than Ethereum. This is partly due to Solana's ultra-low transaction fees and lightning-fast transaction processing speeds, which leave Ethereum far behind.
Right now, Solana is experiencing a new explosive growth in the field of decentralized finance (DeFi). For the first time, decentralized cryptocurrency exchanges are seeing higher trading activity than Ethereum. Moreover, an important performance metric that measures overall DeFi effectiveness - Total Value Locked (TVL) - is growing rapidly.
Bittensor (CRYPTO: TAO) is an open-source protocol that allows the creation of decentralized artificial intelligence (AI) networks. Thus, with Bittensor, you get a crypto token that lies at the intersection of cryptocurrency and AI. This could lead to explosive growth in 2025. As long as investors remain interested in anything related to AI, the price of Bittensor should continue to rise. Over the year, Bittensor has grown by 154%.
Like Bitcoin, Bittensor has a limited lifetime supply of coins at 21 million. Right now, only 7.4 million Bittensor coins are in circulation, which is why the current price of Bittensor - just below $700 - might shock you. The limited supply gives Bittensor a property that few other cryptocurrencies possess. Over time, as demand for AI grows, the price of Bittensor should rise.
However, in the emerging AI crypto space, it's extremely difficult to pick winners. The field is growing very quickly, and investor preferences can change in an instant. Earlier this year, it seemed that Render would be the best AI crypto token, but now the new hot AI crypto token is Bittensor.
Finally, there is Chainlink (CRYPTO: LINK), which continues to be an outstanding oracle coin in the cryptocurrency market. Its market capitalization currently stands at $15 billion, having grown by 62% over the year. Experienced crypto investors remember Chainlink from the previous bull market in cryptocurrencies in 2020-2021, when Chainlink skyrocketed in price by over 400% in just a few months.
Of course, there is no guarantee that history will repeat itself, but there are several factors in favor of Chainlink in 2025. The most important of these is the planned strategic shift towards asset tokenization. As part of this strategy, Chainlink is collaborating with financial institutions to help transform traditional financial assets into digital assets (i.e., tokenized assets) that can be traded on the blockchain.
According to estimates from several well-known consulting firms, by 2030 asset tokenization will present market opportunities worth several trillion dollars. If Wall Street supports this trend, the value of Chainlink should rise sharply over the next five years.
Which cryptocurrency has the greatest growth potential?
What is interesting about these three cryptocurrencies is that each has a very clear investment thesis: Solana is the 'next Ethereum', Bittensor is the 'Bitcoin for AI', and Chainlink is the 'banking coin'. If you want to diversify beyond Bitcoin and Ethereum, all three cryptocurrencies deserve attention. While all three have potentially explosive growth potential, they also carry additional risk.
* The information contained herein is for informational purposes only and is not intended as individual investment advice or an offer to purchase the mentioned securities. Acquiring foreign securities carries additional risks.