- Expert spotlights key crypto sectors for the next market cycle: speculation, real-world assets, and AI infrastructure.
- Real-world asset tokenization is expected to increase from $0.6 trillion to $16 trillion.
- Investing in AI infrastructure is recommended as blockchain and AI converge.
In a recent video from the YouTube channel Crypto Banter, the host discussed three major crypto sectors poised to be the driving forces of the next market cycle. According to the host, these sectors should form the foundation of any crypto investor’s portfolio.
Firstly, the host emphasized the enduring appeal of speculation in the crypto space. He argued humans have a natural inclination towards gambling, and crypto, often called the world’s largest and most accessible casino, is well-positioned to benefit from this inherent human behavior.
According to the analyst, gambling platforms and decentralized exchanges (DEXs) are two key growth verticals for the speculation realm. He cited Rollbit as a prime example of a gambling platform that has gained prominence.
Furthermore, the host highlighted real-world assets as the second sector to look out for significant returns beyond 2024. He pointed out that the DeFi sector faces challenges due to increased global interest rates, which reduce the incentives for staking in DeFi yield farms.
However, the presenter noted the tokenization of real-world assets as a breakthrough. Quoting data from the Boston Consulting Group, he estimated a significant growth potential for the real-world asset tokenization sector. In particular, the researcher projected the sector to increase from $0.6 trillion to $16 trillion by 2030.
Moreover, the speaker suggested investing in individual real-world asset protocols or layer-one and layer-two blockchains likely to become hubs for tokenized assets. He argued that while the latter is safer with potentially lower rewards, the former is riskier but offers higher potential rewards.
Specific protocols in this sector include Frax, known for its V3 and lending capabilities. He also cited Maker DAO, which has accrued over $600 million of vault value by bringing Treasury yields onto the blockchain.
Finally, the host discussed the convergence of two major technological breakthroughs: artificial intelligence (AI) and blockchain technology. He recommended investing in the infrastructure side of AI, with projects like Render, which decentralizes GPU power, mentioned as valuable contributors to this sector.
Besides, the host underlined the importance of reserving funds for new and unreleased AI projects. He noted utilizing stablecoins for dollar cost averaging (DCA) in the projects as they emerge.
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