If you’re looking for ways to diversify your cryptocurrency portfolio, you may want to look beyond just Bitcoin And Ethereum. Although these two cryptocurrencies may attract all the attention of investors, there are many little-known cryptocurrencies whose value could skyrocket in 2025.
In order to come up with a list of promising investment targets, I set a limit of $5 billion in market capitalization. This limits the choice to just 30 different cryptocurrencies. I then narrowed this list down to just three, based on their ability to outperform Bitcoin and Ethereum in 2025.
Solana
While Solana (GROUND 1.53%) has existed for several years, it is only just beginning to establish itself and attract the attention of institutional investors. Solana now ranks among the top five cryptocurrencies by market capitalization, and in terms of performance, it has kept pace with Bitcoin this year. For the year, Bitcoin is up 143%, while Solana is up 140%.
There is now talk of Solana becoming the next cryptocurrency to get a spot ETF. If this happens, then the price of Solana could soar in 2025. As we saw with the example of spot Bitcoin ETFs (and, to a lesser extent, with spot Ethereum ETFs), the creation of an ETF investment product can lead to a wave of new money flowing into this cryptocurrency.
Plus, Solana seems to be firing on all cylinders right now. It has become Ethereum’s main rival and arguably has more long-term upside potential than Ethereum. This is due in part to Solana’s ultra-low transaction fees and lightning-fast transaction processing speeds that leave Ethereum in the dust.
Currently, Solana is experiencing explosive new growth in the decentralized finance (DeFi) space. For the first time, Solana is now seeing more trading activity on its decentralized cryptocurrency exchanges than on Ethereum. Additionally, an important performance metric that measures the overall strength of DeFi – total value locked (TVL) – is growing rapidly.
Bittenseur
Bittenseur (TAO -1.54%) is an open source protocol that enables the creation of decentralized artificial intelligence (AI) networks. So with Bittensor you get a crypto token that sits at the intersection of crypto and AI. This is what could lead to explosive growth in 2025. As long as investors continue to embrace all things AI, Bittensor’s price should continue to skyrocket. For the year, Bittensor is now up 154%.
Just like Bitcoin, Bittensor has a lifetime coin supply limited to 21 million. Right now, only 7.4 million Bittensor coins are in circulation, and that’s why Bittensor’s current price – just south of $700 – might surprise you. But this limited supply gives Bittensor the type of inherent scarcity that few other cryptocurrencies possess. Over time, as the demand for AI increases, the price of Bittensor is also expected to increase.
The only caveat here is that it is extremely difficult to pick winners in the emerging AI crypto space. The field is growing very quickly and investor preferences can change overnight. Earlier this year it seemed that Give back (CRYPTO: RENDERED) was going to be the best AI crypto token because the narrative was all about the computing power of the GPU. But now the narrative has shifted to decentralized AI networks, and Bittensor has become the hot new AI crypto token.
Chain link
Finally, there is Chain link (LINK -4.24%)which continues to be the preeminent oracle coin in the crypto market. Its market capitalization now stands at $15 billion and is up 62% for the year. Long-time crypto investors will remember Chainlink from the previous crypto bull market of 2020-2021, when Chainlink quickly soared in value by over 400% in just a few months.
Image source: Getty Images.
Of course, there is no guarantee that history will repeat itself, but there are a number of factors in favor of Chainlink between now and 2025. The most important of these is a strategic and planned move towards asset tokenization. As part of this strategy, Chainlink partners with financial institutions to help convert traditional financial assets into digital assets (i.e. tokenized assets) that can be traded on a blockchain.
According to several leading consulting firms, asset tokenization will represent a multi-billion dollar market opportunity by 2030. If Wall Street embraces this trend, Chainlink’s value is expected to skyrocket over the next five years.
Currently, a growing consensus is that Chainlink can become a trusted partner for financial institutions looking to explore the future of digital assets on the blockchain. This is due, in part, to Chainlink’s recent partnerships with companies such as SWIFT, Euroclear, and UBS Asset Management.
Which cryptocurrency has the highest upside potential?
What’s interesting about these three cryptocurrencies is that each of them addresses a very distinct investment thesis. Solana is “the next Ethereum”. Bittensor is “Bitcoin for AI”. And Chainlink is “the banking coin”. It’s up to you, of course, to decide whether these are just empty marketing slogans or whether there’s actually a nice, juicy steak behind all the sizzle.
If you’re looking to diversify beyond Bitcoin and Ethereum, all three cryptocurrencies are worth a closer look. Remember to do your due diligence. While these three have potentially explosive upside potential, they also carry additional risk.
