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Among thousands of cryptocurrencies, it is clear that Bitcoin (BTC) and Ethereum (ETH) took the public spotlight and are likely to take more capital inflows in the future. So much so that even Ethereum is poised to become an institutional investment vehicle via exchange-traded funds (ETFs), joining Bitcoin.
Out of a total $2.63 trillion market cap, including stablecoins, ETH and BTC make 70% of the crypto pie. Year-to-date, Bitcoin and Ethereum are neck and neck, having gained 60% and 62% value, respectively.
However, the larger the market cap, the harder it is to move the price upwards, just like in the stock market. This is why many low-cap memecoins performed well during 2024, driven by speculation and memory.
Yet, engaging in memecoins is exceedingly risky. Most traders can’t tell if they are riding from the top to the bottom, holding the devalued bags, or riding from the bottom to the top, enjoying substantial profits. After all, memecoins’ value is inherently unclear, which makes them so speculative in the first place.
To that end, prospective crypto investors should look into these infrastructure cryptocurrencies, which are backed by developers, funding, and clear goals.
Immutable X (IMX)
Immutable X (IMX) is an investor’s exposure to blockchain gaming. While Ethereum is a blockchain network for issuing tokens and smart contracts to power decentralized finance (DeFi) with dApps, it relies on layer 2 networks to scale. Immutable X is one of those networks.
Owing to StarkWare’s zk-rollups technology, Immutable X facilitates zero gas fees for end-users. This contrasts Ethereum’s expensive and volatile gas fees for even simple token transfers. In turn, this is a game changer for game developers who wish to deploy their products at scale.
For instance, if a game has tradable in-game assets as non-fungible tokens (NFTs), like cards or collectible creatures, traders don’t have to worry about long confirmation times and heavy transaction fees. This boosts the in-game economy and player experience, paving the way for blockchain gaming.
Presently, there are over 300 games in Immutable’s funding ecosystem worth $1 billion over 20 marketplaces. Previously known as Fuel Games, Immutable is the parent company in charge of the Immutable X framework for developers to launch their projects with low friction.
The cryptocurrency itself, IMX, is the utility and governance token of the network. Akin to shareholders of companies, IMX tokenholders get a say in the development of the platform with a voting mechanism. Additionally, developers using the platform pay 2% fee in IMX tokens.
For comparison, game developers deploying their games on Steam suffer a 30% sales cut. The total IMX token supply is limited, just like Bitcoin, but to a greater extent, it has 2 billion IMX tokens, of which 74% are already in a circulating supply.
Year-to-date, the IMX token has gained 12% value after price correction but 393% over the last year. Given that the Immutable X network is Ethereum-adjacent, the token is likely to revisit previous highs with the prospective launch of ETH ETFs. According to Fortune Business Insights, the blockchain gaming market is forecasted for a 21.8% CAGR between 2023 and 2030.
Avalanche (AVAX)
Ethereum’s software engineering path relies on layer 2 networks to offload the transaction burden from the main network. Avalanche (AVAX) is a competitive, versatile network that picked another approach.
Instead of users having to jump through network hoops with their Web3 wallets, Avalanche itself has a modular design via subnets. Each subnet has its own rules and consensus mechanisms, but they all operate under the high-throughput Avalanche consensus protocol.
In addition, Avalanche boosts scaling with three interoperable blockchains within the network. X-Chain, C-Chain, and P-Chain tackle different aspects of the network, like staking, smart contracts, and asset creation.
This leads to a greater unified experience for the end-user, who still enjoys fast execution and low fees. Moreover, Avalanche’s C-Chain ensures compatibility with Ethereum, enabling users to transfer digital assets with Avalanche Bridge via the Core wallet.
Attesting to Avalanche’s approach to blockchain design, several banks used it to test their future tokenization efforts, including Bank of America, Citi and JPMorgan.
Powering the network’s economy, the AVAX token is limited to 720 million, of which 55% is in circulation. AVAX token holders get a say in the issuance of the remaining supply. Year-to-date, AVAX is down 14%, making for a solid entry point after a one-year value growth of 160%.
Fetch.AI (FET)
Just as Nvidia (NASDAQ: NVDA) reaped the AI hype, Fetch.AI did the same in the blockchain world. The FET token gained 794% value over one year, or 194% YTD. Moving forward, this is crypto investor’s main exposure to the tokenization of AI projects.
That’s because Fetch.AI (FET), SingularityNET (AGIX), and Ocean Protocol (OCEAN) will all be under the umbrella of the SuperIntelligence Alliance, with its new universal token ASI, poised to merge the market caps of FET, AGIX, and OCEAN tokens.
After the merger into ASI, FET tokens will be limited to a 2.63 billion supply. Mirroring the decentralization efforts of finance to counter banks and central banking, the new network’s purpose is to monetize AI development openly and transparently.
This includes raising funds for AI projects with ASI tokens, paying transaction fees, using it as a governance token for voting, and using it as a utility for open-source AI development. After the merger announcement in mid-April, the FET price has been moving sideways, having dropped by 3%.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.