2 cryptocurrencies to buy and add to your portfolio for the AI boom

The artificial intelligence (AI) boom has put related startups, stocks, and cryptocurrencies in the spotlight and investors’ portfolios in 2024. Now, looking at 2025 amid an expected altcoin bull rally, Finbold selected two AI-related cryptocurrencies to consider buying moving forward.

Notably, the AI boom has left its mark on financial markets. Startups have surged to compete against ChatGPT’s OpenAI, AI-related stocks like Nvidia (NASDAQ: NVDA) have rewarded investors with life-changing gains, and even Uranium has made waves among other commodities due to the increased demand.

All that has also impacted the cryptocurrency market either with real AI-related solutions or vaporware speculative tokens like the memecoin GOAT. On the former, Bittensor (TAO) and Render (RENDER) are cryptocurrencies to consider buying and adding to a portfolio in 2025.

It is important, however, to note that these mid-cap cryptocurrencies bear significant risks and can not guarantee positive returns. Investors should do their research and have a clear strategy before making any financial decision.

The decentralized AI: Bittensor (TAO)

Bittensor is a decentralized AI project that operates over 50 subnets, functioning like specialized neural networks for various AI tasks. Participants are incentivized with TAO tokens for their contributions, creating a system that democratizes AI development and secures the network.

Analysts predict a significant AI boom in 2025, and Bittensor’s unique framework positions it as a potential leader. Moreover, institutional backing from companies like Grayscale and Foundry Digital validates its technology and boosts investor confidence.

However, concerns about sustainability and potential price corrections should be considered, as TAO’s circulating supply increases fast. The ongoing inflation could create significant selling pressures and even neutralize potential gains from a not-enough demand.

On that note, Bittensor’s staking rewards, offering 15% to 20% annual returns, can end up having a negative real staking reward when weighted by supply inflation, sometimes frustrating passive income expectations, as Finbold reported.

Investors should weigh these factors when considering adding TAO to their 2025 portfolio to navigate the AI boom. By press time, TAO was trading at $491 in a corrective move after peaking at $681 per token.

Bittensor (TAO) daily price chart. Source: TradingView / Finbold / Vinicius Barbosa

The Nvidia of crypto: Render (RENDER)

From a different perspective, Render is a decentralized GPU computing network that leverages unused computing power from crypto miners, transforming it into a distributed economy for complex rendering tasks.

Often dubbed “the Nvidia of crypto,” Render connects GPU providers with creators, democratizing access to high-performance computing resources. This decentralized approach makes it more affordable and scalable for users worldwide.

Interestingly, Render’s recent migration from Ethereum to Solana enhances its efficiency and scalability, positioning it for significant growth. Analysts predict the global AI market will reach $190.61 billion by 2025, growing at a CAGR of 36.62%. Render’s role in this boom is remarkable, as it provides the computational power needed for AI and machine learning tasks.

The token, previously RNDR and now RENDER, is trading at $5.10, testing a key level in the monthly chart.

Render (RENDER) 30-day price chart. Source: Finbold

Nevertheless, investors should consider potential volatility and the competitive landscape. Despite these risks, Render’s unique value proposition and strategic migration make it a compelling addition to any AI-focused portfolio for 2025.

Featured image via Shutterstock

Source: https://finbold.com/2-cryptocurrencies-to-buy-and-add-to-your-portfolio-for-the-ai-boom/