Heading into 2025, artificial intelligence (AI) was considered one of the biggest investment trends of the year for the crypto sector. Until recently, this year many top AI ciphers have grown.
However, over the past 30 days some of the most popular AI ciphers have suddenly risen by 30%, up from nowhere. Is this a sign of a potential comeback in the AI Crypto sector or a bouncing off a dead cat? Let’s take a closer look.
Where would you invest $1,000 now? Our team of analysts has revealed what we believe is the 10 best stocks to buy now. Continues “
Earlier in the year, Cathie Wood of Ark Invest released “Big Ideas 2025.” One of the major themes was “technical convergence.” The idea is that several important innovation platforms are converging to accelerate technological and economic growth. Two of the innovation platforms highlighted in the report were AI and blockchain technology.
The convergence of AI and Crypto is one of the great ideas that can make you a billionaire one day. Of course, the only problem is that there were no cryptocurrencies that fully utilized this convergence. Cathie Wood did not specifically point out the AI Cryptos in the report, but in the past it suggests that the convergence of Bitcoin and AI is interesting.
Currently, both sides have high-level AI cryptography prospects. (Code: Tao)rendering, and artificial super intelligence alliance. All of these have market capitalizations exceeding $1.5 billion, and they have all been mentioned several times as potential billionaires makers.
Of course, there are dozens of other AI ciphers, but they all have much lower market capitalizations and are quite speculative. Usually they quickly spike in value, then collapse back to zero. With only a handful of people reaching the $500 million threshold, they are still less likely to reach the $1 billion level.
In 2024, Virtuals Protocol reached a market capitalization of $2.5 billion based on its ability to leverage the hype surrounding AI agents. Certainly, at some point in December, it was the best cryptocurrency in the world. But look at what happened in 2025. It has collapsed in value and is now trading at 85% below the record high.
By leaning through the list of AI coins on platforms like Coinmarketcap and Coingecko, you can find outlook for other potential investments. However, buyers should be careful. A bit of due diligence will quickly reveal that many of these are not pure AI coins.
The story continues
For example, it photographs an internet computer with a market capitalization of $2.8 billion. Technically, it’s not an AI coin. However, it is possible to run AI applications on the blockchain, so they are often grouped into the “AI Coin” category.
Of these, the most attractive investment outlook is Bitenser, with a market capitalization of $3 billion and recently acquired the Coinbase Global list. Bitenser is basically a blockchain for AI projects, and the currency in the area is tao tokens. In other words, you pay for AI computing power with Tao Tokens and earn Tao Tokens to provide AI computing power.
Image source: Getty Images.
In theory, this is exactly the kind of AI and cryptography convergence that Wood mentioned in her Big Ideas 2025 report. My main concern with bittenser is that it is rather difficult to understand how it works and how it creates value.
Even the bittenser seems to agree. A section of the website called “Bittensor Paradigm” states:
Yes, well, I think that’s me. That’s a big reason why I haven’t invested in Bittensor yet. You can hear Warren Buffett’s voice whispering in your ears. “Don’t invest in a business you don’t understand.” Therefore, I highly recommend checking out the official Bitenser whitepaper and trying to understand it yourself.
On the plus side, Bittensor has a small coin supply (only 21 million coins, of which only 8.65 million are in circulation), offering an open source approach to AI that is different from its unique approach to AI, popular in Silicon Valley. Overall, it appears to be one of the few ciphers that really sit at the intersection of AI and blockchain technology.
My overall point is that it may be too early to invest in AI Cryptos. Even after the last 30 days of mini-rries, the top three AI cryptos still fall from 25% to 50% per year. And all of them are well below the all-time high. For example, Bittensor has been below the record high of 56% since April 2024.
Plus, if a well-known tech stock such as Nvidia is being assaulted, you don’t have much confidence to invest in AI Cryptos. In a perfect world, tech stocks with AI Cryptos and AI should move to tandem, right?
That being said, the recent revival of the AI Crypto sector is interesting. I have put a few names on my watchlist and remain optimistic about the opportunities for potential billionaires makers.
Consider this before purchasing stock at Bitenser.
The Motley Fool Stock Advisor Analyst team has identified what investors consider to be the 10 best stocks to buy now. The 10 stocks that have made the cut could potentially generate monster returns over the next few years.
When should you think about it?NetflixI created this list on December 17, 2004…If you invested $1,000 at the time of recommendation,$594,046! * Or in the case of nvidiaI created this list on April 15, 2005… If you invested $1,000 at the time of recommendation,There is $680,390! *
Now it’s worth notingStock AdvisorThe total average return rate872% – Market-breaking outperformance compared to160%For the S&P 500. Don’t miss out on the latest Top 10 list that you can use when participatingStock advisor.
View 10 shares »
*Stock Advisor will return as of April 28, 2025
Dominic Basulto has Bitcoin and Fetch positions. Motley Fool recommends Bitcoin, Fetch, Nvidia and rendering. Motley Fool recommends both sections and an Internet computer. Motley Fools have a disclosure policy.
AI cryptocurrencies are rising rapidly. Which should I buy? Originally published by The Motley Fool
