AI coins are going to explode. Here's what you need to know.

In the aftermath of a dramatic Bitcoin breakout, the crypto world is buzzing. History has shown us that when Bitcoin surges, it pulls the rest of the market along in a cascade of liquidity rotation. This isn't just a fluke of market mechanics—it’s the heartbeat of a crypto cycle. When Bitcoin takes centre stage, it signals confidence, drawing in institutional players and retail investors alike. And once BTC dominance hits a peak, the real excitement begins: capital begins flowing into altcoins (alternative crypto currencies to Bitcoin), creating fertile ground for projects with compelling narratives and disruptive technologies.

This time, the stage is uniquely set. We’re in the midst of a strategic global shift, where regulatory clarity is no longer just a hope but an emerging reality. Governments are racing to adopt positive crypto policies, driven by geopolitical competition and the realisation that blockchain and AI are no longer fringe technologies—they’re tools of the future. Bitcoin is even being discussed as a potential reserve asset (as discussed in The Crypto Magic Formula: A Perfect Bull Market), a move that would legitimise the entire crypto ecosystem on a scale we’ve never seen before.

And here’s where it gets interesting: liquidity rotation this cycle is about real utility, and AI-integrated Web3 projects are perfectly positioned to capture the lion’s share of this growth.

The Super Cycle and Why AI in Web3 is Key

Crypto moves in cycles—it always has. Back in 2017, Ethereum’s rise sparked the DeFi revolution, showing the world what decentralised financial systems could look like. Then in 2021, NFTs and metaverse projects captured imaginations and wallets alike, drawing waves of liquidity into these emerging markets. These were moments where innovation and market momentum collided to create entirely new narratives.

Now, we’re seeing the early signs of another shift. Bitcoin is rallying toward all-time highs, signalling a wave of confidence that always kicks off the next big rotation. Liquidity is already flowing in, and on-chain metrics are clear: Bitcoin dominance is peaking, unique wallet activity is surging, and major players are moving BTC off exchanges, typically a precursor to altcoin seasons. This time, however, the liquidity will target the altcoins aligned with the most powerful narrative of the moment: AI and Web3.

Why AI and Web3? Because they bring the best of both worlds: AI’s intelligence—automation, efficiency, and data-driven insights—and blockchain’s transparency and ownership. Together, they’re paving the way for decentralised AI systems to revolutionise industries, from supply chains to virtual worlds. If you missed it, we dove deep into this blend in last week’s newsletter!

Year-to-date, an equally weighted basket of AI-focused crypto tokens is up 80%, outpacing the broader crypto market, which has seen a slight decline. Themes like AI, exchange-traded funds (ETFs), meme coins, and blockchain-based gaming are capturing “narrative mindshare,” a metric tracked by Kaito that analyses social media mentions of key crypto themes. AI remains dominant, highlighting its staying power in the Web3 space.

This cycle feels different — it’s bigger. Some are calling it the super cycle. Think about it: we’re seeing geopolitical moves toward crypto-friendly regulation, discussions of Bitcoin as a reserve asset, and institutional capital flooding into the space. But the real excitement comes from the next wave of projects, and AI-Web3 is right in the sweet spot.

The liquidity rotation into these projects is already beginning. Historically, when Bitcoin dominance peaks, investors hunt for the next big thing, and in 2024, that’s shaping up to be AI-Web3. Projects like Fetch.AI, Render, Oraichain, and Zero1 Labs are pushing boundaries, creating autonomous agents, decentralised compute networks, and tools for integrating AI into blockchain systems.

This is in no way financial advice and sure, these projects are risky. They’re early-stage, and their ecosystems are still maturing. But that’s also where the potential lies. If we’re truly entering a super cycle, the capital flowing into crypto won’t stop with Bitcoin. It will search for projects building the future — and right now, that future looks a lot like AI and Web3.

Let’s dive deeper into a few projects that I believe are pioneering this frontier and setting the stage for a decentralised, AI-driven future.

Fetch.AI: The Brains Behind the Autonomous Economy

Fetch.AI (or Artificial Superintelligence Alliance - a collective formed by Fetch.ai (FET), SingularityNET (AGIX), and Ocean Protocol (OCEAN)) is one of the most exciting players in this space. Imagine a world where software agents — little pieces of AI — can carry out tasks for you autonomously. Fetch is building exactly that. It’s creating a decentralised network of autonomous agents that can optimize everyday tasks, from managing your energy consumption at home to coordinating supply chains for businesses.

What makes Fetch truly stand out is its Open Economic Framework (OEF). This is the backbone that allows agents to discover, negotiate, and transact with each other seamlessly. And because it’s decentralised, there’s no need for middlemen or centralised control.

But this isn’t just a cool concept — it’s already being applied in the real world. Fetch has partnered with global logistics firms and energy companies to bring its technology to life. The idea is simple but revolutionary: let AI do the heavy lifting in ways that are efficient, secure, and completely transparent.

In short, Fetch.AI is building a smart infrastructure for a future where autonomous agents handle complex tasks across industries. It’s decentralising decision-making, automating processes, and making everything more efficient, all while providing a level of transparency and trust that centralised systems can’t match. 

Render: Powering the AI Revolution

If AI is going to drive the next wave of innovation, it needs something critical: computational power. That’s where Render comes in. This project is creating a decentralised network of GPUs — those powerful processors that fuel everything from video rendering to machine learning… Arguably one of the most important pieces of infrastructure for the success of AI especially for tasks that involve deep learning and large-scale neural networks.

Think of it like this: Rather than letting unused GPUs in data centres or individual devices sit idle, Render connects these resources to a global, decentralised network. This means that anyone with spare GPU power can contribute to the network, and in return, they earn $RNDR tokens. In addition to the tokens being used for transactions, they also play a pivotal role in how the network operates, ensuring that resources are allocated fairly and contributors are compensated for their computing power.

This decentralised approach is efficient and incredibly cost-effective. Traditional cloud computing providers charge significant fees for using GPU resources, which can make large-scale AI projects prohibitively expensive. Render, by contrast, opens up a whole new market of computing power, lowering the cost of AI tasks and making powerful tools more accessible to developers and companies of all sizes. The idea is to democratise access to high-performance computing and provide the infrastructure needed to power the next generation of AI-driven innovation.

In short, Render is revolutionising the way computational power is accessed by creating a decentralised network of GPUs that can be used for everything from AI processing to 3D rendering and VR simulations. By connecting unused GPUs to this network, Render lowers the cost and barriers to entry for AI projects and other industries that require significant computing power.

Zero1 Labs: Scaling Intelligence for the Blockchain Era

Zero1 Labs isn’t just talking about AI’s potential — it’s rolling up its sleeves and diving into the how. Their goal? To make AI work seamlessly within decentralised ecosystems to simplify the development process and enhance the discoverability, growth, and monetisation of decentralised AI (DeAI) products. That’s a tall order since training and running AI models usually demand massive centralised resources. But Zero1 Labs flips the script, enabling AI to thrive in decentralised environments. This means unlocking next-level applications across DeFi, decentralised identity, and even smart contracts.

At the core of this innovation is Cypher, Zero1 Labs's edge AI powerhouse. It lets AI models process and train data directly within decentralised systems. By cutting latency and enabling real-time, privacy-preserving decision-making, Cypher powers smarter DeFi trading strategies, robust fraud detection, and secure decentralised identity solutions. And forget rigid, one-dimensional smart contracts — Cypher turns them into intelligent agents capable of nuanced decisions on the fly.

Then there’s Keymaker, Zero1 Labs’s answer to one of blockchain’s biggest headaches: interoperability. Blockchain networks are often fragmented, and AI tools can’t thrive in silos. Keymaker fixes that, creating a bridge between Web2 and Web3 to let businesses integrate AI seamlessly into their systems — no infrastructure overhaul required. Think of it as a hub where AI, data, and applications flow freely across networks. Imagine logistics companies using Keymaker to optimize supply chains with on-chain AI or healthcare providers enhancing patient care with secure, decentralised data solutions.

To round it all out, there’s the Zero Construct Program. This initiative equips developers with modular frameworks to build customised AI solutions, breaking down financial and technical barriers. It’s especially impactful for open-source developers and those from underrepresented regions, offering mentorship, funding, and resources to bring their ideas to life. These developers contribute back to the ecosystem, listing their solutions on Keymaker’s marketplace and driving adoption of decentralised AI.

In a nutshell, Zero1 Labs is rewriting the rules for AI on the blockchain. With Cypher, they’re delivering edge AI that’s fast, secure, and scalable. With Keymaker, they’re breaking down silos and enabling seamless interoperability. And with the Zero Construct Program, they’re fostering a global community of creators who’ll shape the future of decentralised AI. Whether it’s finance, logistics, or healthcare, Zero1 Labs is making decentralised AI a practical reality.

Oraichain: Connecting AI to Blockchain

If Fetch is about autonomous agents and Render focuses on computational power, Oraichain serves as the crucial link that ties it all together. It’s the first AI-powered oracle network, designed to connect AI models with blockchain applications. This makes it a key player in the blockchain-AI space, offering more than just data feeds.

What Oraichain brings to the table is the ability to power decentralised applications with AI-driven insights and predictions. This goes beyond just delivering data — it's about enabling real-time, intelligent decision-making. In DeFi, for instance, Oraichain can help adjust interest rates dynamically based on AI-analysed market data. In healthcare, it can provide diagnostic recommendations, all while keeping data secure and decentralised.

But what really sets Oraichain apart is its ecosystem. It’s not just an oracle — Oraichain is building a marketplace where developers can discover, integrate, and even monetise AI models. Tools like Oraichain Studio let developers create and deploy their own AI systems, making it easier for them to build and scale decentralised AI solutions. Plus, with features like Proof of Correctness and Proof of Execution, Oraichain ensures trust in the AI models being used, meaning smart contracts can act confidently on AI-generated insights.

Oraichain's integration of Layer 2 rollups, including Optimistic and ZK-Rollups, further boosts scalability without sacrificing security. Whether it’s for fake news detection, face authentication, or managing intellectual property through AI, Oraichain is powering a wide range of industries. With its forward-looking ecosystem and commitment to developer support, Oraichain is positioning itself as a leader in the decentralised AI space.

Succinctly, Oraichain enables high interoperability with major blockchains through relaying protocols and bridges, and enhances scalability via Layer 2 solutions. Its decentralised platforms, like the Data Hub and AI Marketplace, offer developers easy access to AI models and data services, positioning Oraichain as a key player in blockchain-AI innovation.

A beautiful synergy of narratives

In crypto, following the right narratives is essential as they capture liquidity and shape market trends. What’s exciting about the DeAI space is how several projects like Zero1 Labs, Oraichain, Render, and Fetch — span across multiple overlapping narratives, creating a powerful ecosystem for innovation.

At the heart of this synergy is DeAI (Decentralised AI), where AI models are integrated into blockchain systems. This narrative is being driven by projects like Zero1 Labs and Fetch, enabling decentralised AI applications across industries like DeFi, healthcare, and logistics. DeAI doesn’t exist in isolation — it works alongside DePIN (Decentralised Physical Infrastructure Networks), which focuses on decentralised computing and storage. Render, for example, decentralises computational power, enabling the sharing of GPU resources for AI workloads, making AI more accessible and efficient.

Then, there's the RWA (Real World Assets) narrative, which bridges the gap between off-chain data and blockchain. Oraichain is a key player here, providing AI-powered oracles that connect real-world data, such as market trends or medical insights — with decentralised platforms, enabling smarter decision-making.

Finally, DeSCI (Decentralised Science) is emerging as a powerful narrative, aiming to decentralise scientific research and innovation. By supporting open-source AI development and global collaboration, Zero1 Labs and Fetch is helping to remove barriers in scientific fields, allowing AI to be used for research, development, and education in a decentralised manner.

The beauty of these projects is how they fit together. Render powers DeAI with decentralised computing, while Oraichain connects real-world data to blockchain ecosystems. Zero1 Labs bridges DeAI with DeSCI, and Fetch advances DeAI through autonomous agents. Together, these projects are paving the way for a more interoperable, scalable, and sustainable decentralised future.

As the DeAI sector evolves, these narratives will continue to intersect, driving growth across the blockchain ecosystem. It's clear that the fusion of DeAI, DePIN, RWA, and DeSCI will play a pivotal role in shaping the next wave of innovation in Web3.

Why This Matters

AI and Web3 are two of the most transformative technologies of our time, and the projects pushing these forward are building the foundation for a new era of intelligent, decentralised systems.

The super cycle currently unfolding is unlike anything we’ve seen before. Bitcoin will continue to lead, but the real opportunity lies in projects creating tangible utility at the intersection of AI and Web3.

In good fashion, here are a few key takeaways:

1. Bitcoin's Influence on Market Trends: Bitcoin remains central to crypto market cycles, with its dominance often driving liquidity into altcoins featuring innovative technologies.

2. AI and Web3 Integration: The combination of AI and Web3 is a transformative trend, enabling smarter and transparent applications across industries like finance and logistics.

3. Leading AI-Web3 Projects: Projects like Fetch.AI, Render, and Oraichain are spearheading decentralised AI innovations, offering solutions in computing, data connectivity, and AI oracles.

4. Ecosystem Synergies: Narratives like DeAI, DePIN, and RWA are aligning, creating interconnected systems where projects like Render and Oraichain amplify each other's potential.

5. Crypto's Super Cycle Potential: With clearer regulations and rising institutional interest, the "super cycle" could see unprecedented growth, particularly for AI-Web3 initiatives showcasing real-world utility.

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