The recent decline in cryptocurrencies presents savvy investors with a prime buying opportunity ahead of the upcoming halving. Historical, Bitcoin (BTC USD) has undergone a correction in the months leading up to each halving. But the tide soon turns. Once the halving cuts mining rewards in half, it could push Bitcoin to $100,000 or more as supply tightens. Billions in spot ETF inflows have already led to a supply shortage. When this is combined with the scarcity caused by the halving, conditions are ripe for the next surge.
Additionally, the Fed is likely to cut interest rates this year, providing additional rocket fuel for cryptocurrencies. Although the pre-halving decline was an unwelcome disruption, the macroeconomic environment remains extremely favorable. I believe that now is a good time to take positions before the next move higher. Let’s take a look!
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Data Lake (LAKE-USD)
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Medical science is on the cusp of a “revolution” in new and better treatments as medical AI, machine learning and other data-driven tools come online. The biggest obstacle researchers face is gaining ethical access to high-quality medical data while ensuring it is free of bias.
That’s where Data Lake (LAKE USD) enter the game. It is building a medical “data donation system” that uses blockchain to record and verify donor consent and ensure data is only used with explicit permission. This consent architecture continues Polygon (MATIC USD), a ether (ETH-USD) Layer 2 chain that offers low fees, fast transactions, and robust scalability. Data Lake has been around for over a year, which is a rarity in the world of medical AI cryptos, most of which are only months old. It has grown steadily in the current cycle and its Market cap of $20 million leaves considerable room for improvement.
Beldex (BDX-USD)
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Beldex (BDX-USD) has rebounded significantly higher since November last year, although it has followed the broader crypto market in recent months. However, I believe it could rise in the next rise as it is relatively modest Market cap: $244 million. Beldex’s mission is to enable private and secure data sharing. The project focuses on protecting individual privacy through systematic research on confidential transactions and user security. Its ecosystem supports private dApps including BChat, BelNet, Beldex Browser, Beldex Protocol, and Beldex Bridge. As a proof-of-stake blockchain, Beldex could become a leader Layer 1 ecosystem for dApps as it gains traction in this cycle.
Beldex benefits from strong tailwinds. Its privacy features are proving increasingly relevant as regulation increases. Additionally, BDX has performed better than most cryptocurrencies recently. When altcoin volume returns, cryptocurrencies with strong use cases and modest valuations often see outsized gains. Beldex checks both boxes. I believe the current valuation offers significant upside potential as we enter the next bullish phase.
Specter AI (SPECTRE-USD)
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Spectre.ai (SPECTER USD) includes X-Bubblemaps, sentiment analysis charts and TA chatbots for crypto price predictions telegram. The price performance was impressive compared to the broader crypto market. Specter is still up 215% in the last month and has held up relatively well from its peak. With a market capitalization of just 18 million dollarsI believe there is significant additional upside as we enter the next bull market.
Price predictions and swing trades are very popular in the crypto space and are particularly generating interest in altcoins. With the off-season in full swing, projects serving this DeFi segment could surge as volumes increase. With its focus on predictions, charts and trading bots, Specter is well positioned to ride this wave. The limited dilution also increases its prospects, with 91% of the maximum supply already in circulation.
Specter has performed significantly better than the market recently, even as most alternatives have stagnated. With its niche utility and small market cap, I think Specter could offer huge upside potential from here amid the next alt frenzy. Capitalizing on the mania surrounding crypto predictions, Specter has all the hallmarks of an altcoin designed for parabolic gains during the coming surge.
Synthesis One (SNS-USD)
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Synthesis One (SNS USD), a DAO, operates a play-to-earn system to incentivize users to create datasets for training AI models. It also sells NFTs that offer staking rewards and membership benefits. With the price plummeting from 20 cents to 5 cents in just over a month, SNS could look attractive after its sharp decline. However, I advise caution before investing heavily, as play-to-earn models and NFT memberships often indicate Ponzi schemes.
While the next wave of AI hype could push SNS back up, the company’s business model is raising alarms. Still, more risk-tolerant speculators may try to fish the bottom given the huge selloff. Just keep position sizes cautious as further declines are still possible. Crypto Ponzis can drop 95% or more once the mania subsides. Although I am concerned about the long-term profitability of SNS, tactical traders could see short-term gains. However, approach the potential downsides with your eyes open.
ARC (ARC-USD)
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ARC (ARC USD) draws on the trends of two powerful cryptocurrencies. I am most optimistic when it comes to the next rise. ARC uses intelligent order routing technology to help users find the optimal price across centralized and decentralized exchanges. This algorithm consistently extracts maximum value from the available liquidity. ARC appeals to both institutions and retailers through advanced trading tools and an intuitive interface.
Its Reactor software enables easy development of Web 3.0 and blockchain contracts and protocols. With peak season still in its infancy, DeFi projects with modest valuations often surge as volumes increase. ARC meets these criteria with its mix of DeFi trading tools and Web 3.0 development platform. While its technology appeals more to experienced crypto traders, its intuitive interface opens DeFi to everyday investors as well. If alt fever returns, ARC could ride the wave with its dual focus on DeFi and Web 3.0.
AIT Protocol (AIT-USD)
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AIT protocol (AIT USD) operates a subnet Request sor (TAO-USD) focused on data analysis to optimize the accuracy of the Bittensor models. Bittensor itself was one of the best performing AI cryptos, rising 670% in six months to a Market cap of $3 billion. While Bittensor corrects, his meteoric rise shows the enormous potential of crypto AI. AIT is well positioned to meet Bittensor’s backlog.
However, AIT’s tokenomics raise concerns as significant dilution is imminent. This makes AIT more suitable for short-term trading than long-term holding. However, we are still at the beginning of the off-season. With Bittensor’s firepower, AIT could see parabolic gains in the frenzy phase despite its flawed tokenomics. But be careful not to be left alone when the mania wears off. In my opinion, AIT should not be bought and held for the long term.
Mintlayer (ML-USD)
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Mint layer (ML-USD) enables DeFi, dApps and smart contracts on the Bitcoin blockchain through its Layer 2 solution. With a Market cap of $24 million, it could multiply in legacy madness as capital flows into smaller projects. Mintlayer is more tied to Bitcoin compared to other alternatives, which makes it attractive during Bitcoin’s dominance phase.
Mintlayer enables direct 1:1 exchange of native BTC for tokenized assets minted on its network. This eliminates counterparty risks and intermediaries. No other project has enabled trustless Bitcoin swaps in this way. Mintlayer also runs on a highly decentralized node infrastructure that is accessible to almost everyone.
While 90% of the supply has not yet been released, this dilution will take many years. Mintlayer’s novel BTC swaps and decentralization make it a high-quality microcap alternative. With solid tokenomics and real utility, it could outperform most cryptocurrencies in the mania phase. Of course, an uptrend comes with significant risk. But Mintlayer ticks more boxes than most cryptocurrencies under $50 million.
At the time of publication, Omor Ibne Ehsan did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publication policies.