Bitcoin (btc) is outperforming both traditional financial assets and most of the cryptocurrency market in 2023, more specifically due to its latest price rally this week. This performance has raised the chants of what could be a just beginning confinementled by BTC.
It is still not sure if a bull run has really started or if it is a short flight that will be used as exit liquidity for the whales. bitcoin minersand great players. However, the flight has begun for BTC, raising its dominance to more than two-year highs since April 2021, for a mark of 52.53% at press time, according to Commercial view Bitcoin Dominance Index (BTC.D).
Historically, Bitcoin starts bull runs as the leading cryptocurrency, with an increase in market capitalization dominance over the other projects, which can then follow the trend of what is called an "alt season" in cryptocurrency trading.
With that in mind, Finbold turned to ChatGPT - through GPT-4 API bot that receives payments in crypto โ to request three small-cap recommendations CRYPTOCURRENCIES with a value asymmetry between its current market capitalization and its fundamentals.
ChatGPT Recommends 3 Cryptocurrencies for Alt Season
In particular, Finbold first used the '/setrole' command to make Artificial intelligence (AI) plays the role of โa cryptocurrency value investor consultancy for a financial news outlet.โ Then we use the following message without prior context:
โI recommend 3 small-cap cryptocurrencies with a notable asymmetry between their current market cap and fair value. This way, value investors can position themselves for the next alt season/bull market. Justify your choices.โ
โ Message used by Finbold in the GPT-4 API
ChatGPT suggested three small-cap projects for the next bull market with their respective justifications, and denied that:
โWhile these are carefully selected options based on current market conditions, the volatile and unpredictable nature of the cryptocurrency market means that investors should always conduct their own detailed research before making investment decisions. It is also crucial to understand the concept of โinvest only what you can afford to loseโ when investing in cryptocurrencies.โ
โ ChatGPT-4
The graph (GRT)
Notably, the top AI pick for the next bull market is The Graph (GRT):
โAlthough it was not launched until December 2020, GRT has managed to position itself as a fundamental tool in the DeFi space. Graph works like Google for blockchain, indexing data from the chain, allowing developers to easily extract and use that data in their own dapps. This decreases its development time and with the growing trend of Decentralized Finance (DeFi), data indexing will become a crucial aspect of this ecosystem in ways we may not even foresee now.โ
โ ChatGPT-4
GRT is trading at $0.082 at press time, with gains of 2.32% in the last 24 hours, as it recovers from a negative month of more than 6% accumulated losses. The Graph has a market capitalization of $760 million and is ranked 50th on the Finbold Index.
Orion Protocol (ORN)
As a second pick for a possible alternate season in this expected bull run, the GPT-4 AI recovered the Orion Protocol (ORN):
โThe Orion Protocol seeks to solve some of DeFi's biggest problems by aggregating the liquidity of the entire crypto market on a decentralized platform. Bridging the gap between the centralized and decentralized worlds of cryptocurrencies is a significant strength of Orion, facilitating the future growth of DeFi. โMeta layers that aggregate centralized and decentralized resources increasingly resemble the future infrastructure and frameworks upon which blockchain 3.0 will be built.โ
โ ChatGPT-4
Meanwhile, ORN is changing hands at $0.50 at press time, with gains of 1.85% in the last 24 hours, while moving in a slight monthly uptrend. Onion Protocol has a market capitalization of $17.1 million and is ranked 682 in the Finbold index.
Injective protocol (INJ)
Injective protocol (INY) is the third small-cap cryptocurrency recommended by ChatGPT artificial intelligence:
"As a decentralized derivatives exchange, Injective Protocol cuts out the middleman, providing peer-to-peer trading that promises the speed and functionality of a centralized exchange without the associated security risks. Given the rise in popularity of cryptocurrency derivatives trading, this positions Injective Protocol in a promising market. Additionally, its layer 2 solution is based on Cosmos, which could be an advantage if Ethereum continues to face scalability issues.โ
โ ChatGPT-4
INJ is trading at $9.0 at press time, with gains of 2.98% in the last 24 hours, while breaking a price resistance a month ago and setting new local highs. Injective Protocol has a market capitalization of $754.2 million, ranking 51st in the Finbold index.
Ultimately, there are no guarantees that a bull run is already underway, nor that an alternative season will occur. The future evolution of prices will depend entirely on the future evolution of the ecosystem, as well as the macroeconomy.
It is also important to say that low market capitalization assets offer even greater volatility and risks for traders and investors.
Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When investing, your capital is at risk.
