If you’re looking for ways to diversify your crypto portfolio, you may want to look beyond Bitcoin And Ethereum. While these two cryptocurrencies may be grabbing all the attention from investors, there are plenty of under-the-radar cryptocurrencies that have the potential to skyrocket in value in 2025.
In order to create a list of promising investment targets, I set a market capitalization cutoff of $5 billion. That limits the choice to just 30 different cryptocurrencies. I then narrowed this list down to just three, based on their ability to outperform both Bitcoin and Ethereum by 2025.
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While Solana(CRYPTO: SOL) has been around for several years, but is only now starting to become mainstream and attract the attention of institutional investors. Solana is now among the top five cryptocurrencies in terms of market capitalization, and in terms of performance it is keeping pace with Bitcoin this year. This year, Bitcoin is up 143%, while Solana is up 140%.
There is now talk of Solana becoming the next cryptocurrency to get a spot ETF. If that happens, Solana’s price could skyrocket by 2025. As we saw with the example 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 that cryptocurrency.
Moreover, Solana seems to be firing on all cylinders at the moment. It has emerged as Ethereum’s main rival and likely has more upside potential than Ethereum in the long term. In part, that’s thanks to Solana’s ultra-low transaction fees and lightning-fast transaction processing speeds that leave Ethereum in the dust.
Right now, Solana is seeing explosive new growth in the decentralized finance (DeFi) space. For the first time, Solana is now seeing more trading activity on its decentralized cryptocurrency exchanges than on Ethereum. Additionally, a key performance metric that measures overall DeFi strength – Total Value Locked (TVL) – is growing rapidly.
Bit tensor(CRYPTO: TAO) is an open source protocol that enables the creation of decentralized artificial intelligence (AI) networks. So with Bittensor you get a crypto token that is at the intersection of crypto and AI. That’s what could lead to explosive growth in 2025. As long as investors continue to embrace all things AI, Bittensor’s stock should continue to rise. For the year, Bittensor is now up 154%.
Like Bitcoin, Bittensor has a limited lifetime coin supply of 21 million. Right now, there are only 7.4 million Bittensor coins in circulation, which is why Bittensor’s current price – just south of $700 – could give you a huge shock. But this limited supply gives Bittensor the kind of inherent scarcity that few other cryptocurrencies possess. As demand for AI grows over time, so will Bittensor’s price.
The only caveat here is that it is extremely difficult to pick winners within the emerging AI crypto space. The field is growing very quickly and investor preferences can change overnight. Earlier this year it seemed that way Cause(CRYPTO:RENDER) was going to be the best AI crypto token because the story was all about GPU computing power. But now the narrative has shifted to decentralized AI networks and Bittensor has become the hot new AI crypto token.
Finally there is Chain link(CRYPTO: LINK)which remains the leading oracle coin in the crypto market. It now has a market cap of $15 billion and is up 62% this year. Longtime crypto investors will remember Chainlink from the previous crypto bull market of 2020-2021, when Chainlink quickly rose in value by over 400% within months.
Image source: Getty Images.
There is of course no guarantee that history will repeat itself, but there are a number of factors in Chainlink’s favor heading into 2025. Chief among these is a planned, strategic move towards tokenization of assets. As part of this strategy, Chainlink is working with financial institutions to convert traditional financial assets into digital assets (i.e. tokenized assets) that can be traded on a blockchain.
According to several high-profile consulting firms, asset tokenization will be a multi-trillion dollar market opportunity by 2030. If Wall Street embraces this trend, Chainlink’s value should soar over the next five years.
Currently, the growing consensus is that Chainlink can become a trusted partner for financial institutions looking to explore the future of digital assets on the blockchain. That’s partly thanks to Chainlink’s recent partnerships with the likes of SWIFT, Euroclear and UBS Asset Management.
The interesting thing about these three cryptocurrencies is that they each have their own investment thesis. Solana is ‘the next Ethereum’. Bittensor is “Bitcoin for AI.” And Chainlink is ‘the banking currency’. Of course, it’s up to you to decide whether these are just empty marketing slogans, or whether there’s actually a tasty, juicy steak behind all that sizzle.
If you’re looking to diversify beyond Bitcoin and Ethereum, all three cryptocurrencies are worth further consideration. Don’t forget to do your own due diligence. While all three have potentially explosive upside, they also come with additional risk.
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Dominic Basulto has positions in Bitcoin, Ethereum and Solana. The Motley Fool has positions in and recommends Bitcoin, Chainlink, Ethereum, Render Token and Solana. The Motley Fool has a disclosure policy.
These 3 Cryptocurrencies Could Skyrocket in 2025 was originally published by The Motley Fool
