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Bitcoin (BTC) is outperforming both traditional finance assets and the majority of the cryptocurrency market in 2023, more specifically due to its most recent price rally this week. This performance has raised the chants for what could be a just-started bull run, led by BTC.
It is still not sure whether a bull run has really started, or if this is a short flight that will be used as exit liquidity for whales, Bitcoin miners, and big players. However, the flight has started for BTC, raising its dominance to over two-year highs since April 2021, for a 52.53% mark by press time, according to TradinView Bitcoin dominance index (BTC.D).
Historically, Bitcoin starts bull runs as the leading cryptocurrency, with a spike in market capitalization dominance over the other projects, that can later follow the trend for what is called an “altseason” in crypto trading.
With that in mind, Finbold turned to ChatGPT — through the GPT-4 API bot that receives payments in crypto — to ask for three recommended low-cap cryptocurrencies with a value asymmetry between their current market cap and fundamentals.
ChatGPT recommends 3 cryptocurrencies for the altseason
Notably, Finbold first used the command ‘/setrole’ to make Artificial Intelligence (AI) play the role of “a cryptocurrency value investor consulting for a financial news outlet”. We then used the following prompt without previous context:
“Recommend 3 low-cap cryptocurrencies with a notable asymmetry between their current market capitalization and their fair value. So value investors can position themselves for the next altseason/bull market. Justify your picks.”
— Prompt used by Finbold on GPT-4 API
ChatGPT suggested three low-cap projects for the next bull run with their respective justifications, and disclaimed that:
“While these are carefully selected picks based on current market conditions, the volatile and unpredictable nature of the crypto market means that investors should always conduct their own detailed research before making investment decisions. It’s also crucial to understand the concept of ‘only invest what you can afford to lose’ when investing in cryptocurrencies.”
— ChatGPT-4
The Graph (GRT)
Particularly, the AI’s first pick for the next bull run is The Graph (GRT):
“Although it was only launched in December 2020, GRT has managed to position itself as a critical tool in the DeFi space. The Graph functions like a Google for blockchain, indexing data from the chain which allows developers to easily pull and use that data in their own dapps. This decreases their development time and with the growing trend of Decentralised Finance (DeFi), data indexing will become a crucial aspect of this ecosystem in ways we might not even foresee now.”
— ChatGPT-4
GRT is trading at $0.082 by press time, with 2,32% gains in the last 24 hours, while recovering from a negative month of over 6% accumulated losses. The Graph has a market cap of $760 million, sitting in the 50th position of Finbold’s index.
Orion Protocol (ORN)
As a second pick for a possible altseason in this expected bull run, the GPT-4 AI retrieved Orion Protocol (ORN):
“Orion Protocol seeks to solve some of the largest problems in DeFi by aggregating the liquidity of the entire crypto market into one decentralized platform. Bridging the gap between the centralized and decentralized worlds of crypto is a significant strength of Orion, facilitating the future growth of DeFi. Metalayers which aggregate both centralized and decentralized resources are increasingly looking like the future infrastructure and frameworks blockchain 3.0 will be built on.”
— ChatGPT-4
Meanwhile, ORN is changing hands by $0.50 at the time of publication, with 1.85% gains in the last 24 hours, while moving in a monthly slight uptrend. Onion Protocol has a market cap of $17.1 million, sitting in the 682nd position of Finbold’s index.
Injective Protocol (INJ)
Injective Protocol (INJ) is the third recommended low-cap cryptocurrency by ChatGPT’s artificial intelligence:
“As a decentralized derivatives exchange, Injective Protocol dispenses with intermediaries, providing peer-to-peer trading that promises the speed and functionality of a centralized exchange without the associated security risks. Given the rise in popularity of derivatives trading in crypto, this positions Injective Protocol in an up-and-coming market. Plus, it’s layer-2 solution is built on Cosmos, which could be a plus if Ethereum continues facing scalability issues.”
— ChatGPT-4
INJ is trading at $9.0 by press time, with 2,98% gains in the last 24 hours, while breaking out from a price resistance one month ago and setting new local highs. Injective Protocol has a market cap of $754.2 million, sitting in the 51st position of Finbold’s index.
All things considered, there are no guarantees that a bull run is already happening, nor that an altseason will take place. Future price action will be fully dependent on further developments in the ecosystem, as well as on macroeconomics.
It is also important to say that low market cap assets offer even higher volatility and risks for traders and investors.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.