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Crypto analyst Miles Deutscher has forecasted a significant surge in AI-based altcoins, predicting that decentralized AI projects could experience up to 15 times growth by 2025. In a tweet today, he highlighted key tokens that he believes will thrive in this emerging sector.
AI Market to Hit $826B by 2030, Decentralized AI To Capture $600B
Deutscher is optimistic about the future of AI in cryptocurrency, projecting exponential growth for decentralized AI projects over the next few years. He noted that the global AI market has already expanded by approximately $50 billion in just the past year. He predicts the AI market could surpass $826 billion by 2030, with decentralized AI capturing a significant portion of that growth.
In addition, Deutscher shared data indicating that the total addressable market (TAM) for AI could exceed $12 trillion within the next seven years. If decentralized AI captures just 5% of that market, its value could climb to $600 billion—a 15-fold increase from current levels.
Despite this immense potential, Deutscher points out that AI remains underappreciated in the crypto space, where its market cap ranks only 34th, currently at $39 billion. With the right investments, he believes many low-cap AI tokens could see returns of 5-10x as the sector matures.
Top AI Altcoins to Watch
Deutscher’s portfolio focuses on infrastructure projects that support AI development. Notable picks include TAO from Bittensor, a leader in decentralized AI research, and NEAR from NEAR Protocol, a top Layer 1 AI blockchain.
Other standout tokens in his portfolio include GRASS from Getgrass, which connects AI with crypto, and SPEC from Spectral Labs, which focuses on AI agents and infrastructure.
Deutscher also sees potential in MODE, a platform that facilitates AI-driven yield farming, and NEURAL, which connects AI with gaming. He also highlights DEAI from Zero1 Labs, which enables secure decentralized AI applications with encryption.
However, Deutscher advises investors to maintain a balanced approach, recommending a mix of large-cap assets (around 70%) and smaller, high-potential AI projects (30%). He cautions against investing in too many low-cap tokens without thorough research.
Meanwhile, several factors contribute to the sector’s growth. The rise of autonomous AI agents capable of executing on-chain trades, combined with lower barriers to entry in crypto, is attracting attention from developers and investors alike. Deutscher noted the increasing relevance of decentralized AI in blockchain applications as industries seek efficient, scalable solutions.
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