It has not been a good year for either Dogecoin (CRYPTO: DOGE) or Shiba Inu (CRYPTO: SHIB). Both meme coins are down about 5% for the year, at a time when market leader Bitcoin (CRYPTO: BTC) has soared by more than 80%. Even worse, Dogecoin and Shiba Inu are not even garnering attention from short-term crypto speculators, who are instead focused on Bitcoin Ordinals, the new non-fungible tokens (NFTs) for the Bitcoin blockchain.
But the good news is that there are still plenty of interesting cryptocurrencies out there, and many of them have superior long-term growth prospects and greater utility than dog-themed meme coins. Here's a closer look at three cryptos that should be on your radar right now.
Stacks
Stacks (CRYPTO: STX) is a Layer-2 blockchain that sits on top of the main Bitcoin blockchain. What this means in practical terms is that Stacks adds utility to Bitcoin that goes far beyond just payments. The goal of Stacks is to make possible the use of smart contracts on Bitcoin, and that opens the door to an entirely new set of use cases that include NFTs, decentralized finance (DeFi), and new decentralized applications.
Until this year, many people had never heard of Stacks. But then came the investor craze around Bitcoin NFTs, and Stacks suddenly captured the imagination of investors. Given the close relationship between Bitcoin and Stacks, it's perhaps no surprise that Stacks has been on a tear this year. Stacks is up a whopping 250% in 2023, and now ranks as a top 40 cryptocurrency by market capitalization. With Stacks, you're basically getting a highly leveraged bet on the future of Bitcoin. This is great news if Bitcoin is up big for the year (like it is now), but a potential source of anxiety if Bitcoin starts to fall.
SingularityNET
Given the enormous interest in ChatGPT over the past six months, there has been an explosion in demand for cryptocurrencies powered by artificial intelligence (AI). The crypto that has gotten the most attention from investors is SingularityNET (CRYPTO: AGIX), which is up a head-spinning 400% this year. Previously, SingularityNET was best known for its work with Sophia, arguably the most famous AI-powered robot in the world. But now SingularityNET has been inserted into the conversation about ChatGPT.
Just keep in mind that if you're looking for a direct play on ChatGPT, SingularityNET is not it. While ChatGPT is focused on a form of artificial intelligence known as generative AI, SingularityNET is focused on artificial general intelligence (AGI), which is the highest level of AI possible.
The name of the token is a reference to "The Singularity," the much-hyped and anticipated moment when computers will become smarter than humans. The goal of SingularityNET is to deliver this level of artificial intelligence to the masses, leading to a giant leap forward for humanity. The SingularityNET ecosystem now includes an AI-powered project to research longevity and human life extension. Obviously, the concept of powerful AI that lives on the blockchain is a huge idea, and one with nearly unlimited market potential. But it may take quite a bit of time to develop.
Render Token
Finally, there's Render Token (CRYPTO: RNDR), a decentralized global platform built on the Ethereum blockchain. The goal of Render is to distribute GPU-based rendering jobs across a vast peer-to-peer (P2P) network. In plain English, this means that computing tasks that require a huge amount of computing power -- such as creating immersive 3D environments or hyper-realistic special effects -- can still be done even if you lack the full computing power yourself. All you need to do is connect to the Render Network and pay with Render Token.
Image source: Getty Images.
It's a big idea, and one that has been embraced by Hollywood creators, video game developers, and Web3 innovators. With Apple's recent launch of its $3,499 mixed reality headset, it's easy to see how the computing power of Render could be used to support the creation of new virtual reality (VR) and augmented reality (AR) worlds that are extremely realistic. No surprise, then, that Render Token is up more than 400% this year, and is now one of the top 50 cryptocurrencies by total market cap.
High risk, high reward
Just keep in mind, however, that the potential for high reward also comes with an enormous amount of risk. Stacks is a highly leveraged bet on the future of Bitcoin. SingularityNET is an even bigger bet on the future of AI. And the Render Token is a big bet on the future of mixed reality. That's all well and good, but just remember how fast tech trends can come and go. Just think of the hype around the metaverse in 2021 and how little has come to fruition.
If you are thinking of investing in any of these unique cryptocurrencies, be sure to do your due diligence, and understand exactly what these cryptos offer in terms of utility and long-term growth potential. Once you put in the work, though, you'll understand why a growing number of investors have abandoned meme coins in favor of these three cryptocurrencies, all of which are up more than 250% this year.
