The crypto market has evolved over the last two years. The long crypto winter that began in late 2021 and the series of crypto collapses in 2022 have taught invaluable lessons to investors as well as projects.
What worked in 2020 or 2021 doesn’t work anymore. A good example is the play-to-earn sector that triggered the biggest bull runs in 2021. The niche has mellowed down, with established projects like Axie Infinity, Sandbox, and Decentraland shedding value. NFTs are another sector that is losing its audience. NFT collectibles, in particular, have failed to hold investor attention. DeFi, once touted to be the future of finance, has also undergone a massive blow.
So, what is hot, as we step into the second half of 2023?
What you'll learn 👉
1. Meme coins
Meme coins are the hottest crypto sector in 2023. The seemingly useless and purposeless cryptocurrencies continue to bring generous returns to investors – often in a matter of a few hours.
It’s true that established meme coins like Dogecoin and Shiba Inu have failed to grip the market like they used to in the past. But the niche as a whole hasn’t disappointed. Well, that’s an understatement. The niche revived interest in cryptocurrencies after the long crypto winter of 2022 and the persistently lukewarm performance of 2023.
Pepe took the market by storm in April 2023, bringing four-digit ROI to early investors in a matter of a few days after its DEX launch. Rather than going for the usual meme coin formula with a Doge or Shib tag, Pepe tapped into the hype around the internet meme ‘Pepe the Frog’ created by cartoonist Matt Furie.
The meme coin successfully kindled a wave of euphoria in the market and birthed the launch of dozens of knock-offs in the next few days. Interestingly, many of these went on to make generous returns for investors amid the mania.
Pepe all-time price overview, 28 June 2023, CoinMarketCap
That said, there is little point in buying Pepe now in the hope of making multifold returns. The meme coin has been victim to a series of sell-offs over the last few weeks, sometimes with a loud thud. Although it ballooned up to a $1.6B market cap at one point, Pepe is long past its prime. New entrants like Wall Street Memes, which made headlines with its record presale, pose a threat to Pepe.
Meme coins are highly volatile. You can also call them adventurous investments. They can make you a fortune overnight just like they can wipe out your wallet. You need to be shrewd about your entry and exit points to reap profits from the meme coin market. It’s always best to enter a project before it breaks out and exit once it reaches its saturation point.
For example, the fast-moving presale of Wall Street Memes suggests that a bull run is on the horizon. Crypto publications predict anywhere from 25X-30X price surge for WSM in the days that follow the launch. There are three reasons why:
- Wall Street Memes token is backed by one of the most lively online communities of the same name. It publishes hilarious memes that often take digs at financial institutions, governments, investors, and traders. As one would expect, the community has a global foothold of more than 1M followers.
- The community launched an NFT collection earlier in 2021, selling it out in just 32 minutes. The rapid presale progress also reflects the community’s influence over crypto investors and traders.
- Elon Musk has engaged with the community multiple times in the past.
Given that WSM has raised $11M already, it won’t be long before the presale sells out and the token launches on public exchanges. Once the meme coin has exploded, it won’t just be expensive, but it will also have smaller space for growth.
If you would rather stick to established meme coins, Dogecoin is still a good buy. According to Jeremy Allaire, the chief executive officer of Circle (the issuer of USDC), there will be a rise in demand for DOGE, BTC, and ETH in emerging markets like Hong Kong and China soon.
2. AI tokens
AI was once an idea confined to Sci-Fi novels. In 2023, it entered the mainstream with ChatGPT. From students to working professionals and CEOs, everybody is using the AI assistant today to get things done with more speed and efficiency.
While there have been many discussions about how AI could change our lives in the last few years, this is the first time people have come face to face with how drastic the change could be. We are seeing traces of artificial intelligence across different industries, including Web 3.0.
So it comes as no surprise that AI tokens are in high demand this year. AI tokens refer to assets that are underpinned by projects that explore innovations in blockchain and artificial intelligence. They are performing remarkably well, sometimes at odds with the crypto market, generating attractive returns for investors.
A good example of this trend is AiDoge, which uses AI and machine learning to power a meme generation tool. It creates memes for you in minutes based on text inputs. While AiDoge’s use case has an audience, it is also silly as far as a serious investor is concerned. But projects like yPredict have larger upside potential in the niche.
The AI-based marketplace features curated crypto price predictive models, created by renowned AI experts, quants, and analysts. Traders and investors can gain back their statistical edge in the market, currently flooded with manipulative bots and algorithms, by subscribing to these price predictive models. All subscriptions are paid in YPRED tokens. YPRED holders also get access to basic features on the platform for free.
It’s not too late to buy the token. The presale of YPRED tokens is still live. The low initial market cap of the project on listing makes it an attractive early investment.
3. Market-relevant utility tokens
Utility tokens underpinned by market-relevant Web 3.0 projects are always in demand and 2023 is not an exception. If the underlying project has a potential user base, the cryptocurrency will continue to harness value from its utility. Since they’re primarily built on blockchain innovation and not speculation, they don’t have explosive potential like meme coins. But they can generate substantial returns over time. They are also more stable and sustainable when compared to meme coins.
Bitcoin Cash (BCH) is one of the most striking examples of the market’s shift toward utility-rich assets. While it can’t be ignored that BCH taps into Bitcoin’s popularity, it flaunts more attractive numbers.
The asset, currently ranked 16th on the global cryptocurrency chart by CoinMarketCap, has climbed 123.1% in the last two weeks and 76.8% in the last seven days. Bitcoin, on the other hand, has only managed to gain 5.20% on the weekly chart.
BCH 1-month price overview, 28 June 2023, CoinMarketCap
Launchpad XYZ (LPX) is another cryptocurrency that has stolen the spotlight in June. LPX is the native token of a Web 3.0 hub that is a one-stop shop for crypto yields across different niches. The project’s goal is to lower the entry barrier to the crypto market by improving its user experience. For this, it features an NFT marketplace, a play-to-earn gaming hub, a metaverse experience library, a Web3 wallet, an NFT DEX, and a trading terminal to name just a few.
📢 Sneak peek alert!— Launchpad.xyz (@launchpadlpx) June 27, 2023
At #LaunchpadXYZ, we're crafting an intuitive trading terminal that empowers everyone to master the #Crypto markets
With actionable insights, bespoke indicators, and a user-friendly API, you're in full control
Don't miss out! 👉https://t.co/CrJA4RkGRf pic.twitter.com/jx3U5jomkW
Green cryptocurrencies like Ecoterra are also drawing traction. The recycle-to-earn ecosystem dedicated to boosting climate action has high scope for mainstream adoption through global celebrity and brand partnerships.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com