Crypto Gems: Top crypto assets to watch & buy in January 2025

The crypto bull market is beginning to take shape with a dull December behind us. Bitcoin registered an impressive 47% growth in Q4 2024 while key altcoins lagged against it. Q1 2025 should present the opposite story with altcoins, led by Ethereum, outperforming Bitcoin based on seasonality and timing of the market cycle.

Bitcoin is now trading around $100,000 while the overall crypto market cap is tracking $3.5 trillion. Given the bullishness, we explore some leading narratives in crypto and identify potential gems that could yield strong returns in the coming months. With many assets rallying well, our estimates on returns will be moderated and time bound to the next six months.

Remember, the crypto market is inherently volatile, and it’s crucial to conduct your own research and understand the risks associated with each investment.

Layer 1s and other Infra – SUI, AIOZ and HYPE (Medium Risk, Good Returns)

Blockchain infrastructure forms the backbone of Web3. This month, we identified three altcoins which can have strong returns this quarter.Sui (SUI) is often touted as a challenger to Solana. It is a Layer-1 blockchain founded by a group of developers who earlier worked together in Meta. It is based on Rust programming language similar to Solana and it aims to cater to the next billion users in Web3. It is backed by a16z, Binance Labs, Franklin Templeton and Coinbase Ventures among others. SUI, currently at a $14 billion market cap, can do a 3-5x over six months.

AIOZ Network (AIOZ) provides a comprehensive decentralized infrastructure for Web3 applications, focusing on storage, AI computation, and video streaming. AIOZ token is an ERC-20 token built on the Cosmos blockchain, serving as the native utility token of the AIOZ Network. It facilitates transactions within the network, allows for staking to contribute to network security, and acts as a reward mechanism for nodes providing computing resources and bandwidth. In the last one year, AIOZ registered a 570% growth and, at a market cap of just $1.2 billion, looks set for a 4-6x in the upcoming 2 quarters.Hyperliquid (HYPE) operates on its own Layer-1 blockchain, specifically designed to enhance the efficiency of DeFi applications using a custom consensus algorithm called HyperBFT. With over $160 million in total value locked, Hyperliquid is gaining traction in the DeFi space. Its token, HYPE, was one of the best airdrops last year for loyal users. HYPE has grown from $4 to $24 in no time and, with a $8 billion market cap currently, can do a 5-8x in six months.

AI & Cross-chain – VIRTUAL and ACX (Considerable Risk, High Returns)

Virtuals Protocol (VIRTUAL) is a decentralized platform that enables the creation, co-ownership, and monetization of AI agents, particularly within gaming and entertainment sectors. Launched in 2024 on Ethereum’s Layer-2, Base, it allows users to develop AI agents without requiring technical expertise. With a current market cap of $2.4 billion, VIRTUAL has potential to do 4-6x in the upcoming six months.

Across protocol (ACX) is the one of the fastest and cheapest cross-chain protocols in the Ethereum space. It has worked with Uniswap to release a new bridging standard (ERC-7683). All major aggregators – including rhino.fi, jumper exchange – have been integrated in their product. With decent staking offers of 5-9%, the product has solid fundamentals that keeps steadily growing. ACX, with a fully diluted valuation of $450 million, has high potential (6-8x) but comes with higher risk.

Memecoins of the month – PENGU and PEPE (High Risk, High Returns)

Memecoins continue to be in trend. Though the risks are high, there is a considerable merit to allocate a minor portion of one’s portfolio in them. We pick two such coins this month – PENGU and PEPE. They both have potential to deliver strong results.

The OG – BTC, ETH and SOL (Lowest Risk, Decent Returns)

It is prudent to pivot a majority of your crypto portfolio to the safest assets – Bitcoin (BTC) primarily, followed by Ethereum (ETH) and Solana (SOL). They are proven to build adoption by new investors in the space. Bitcoin’s returns will be less significant (2-3x) hereon but it drives the narrative and volume in crypto.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)