Diversifying Across 2024’s RWA, DePin, AI Trends

Prominent analyst Kyren, known on X (formerly Twitter) as noBScrypto, recently highlighted Hedera (HBAR) and Internet Computer (ICP) as undervalued assets amidst the trending narratives in 2024.

According to Kyren, these cryptocurrencies stand out due to their potential to capitalize on the growth of real-world asset (RWA) tokenization, decentralized physical infrastructure (DePin), and artificial intelligence (AI).

HBAR and ICP Amid Three Leading Web3 Narratives

Kyren highlights Hedera (HBAR) and Internet Computer (ICP) as two altcoins that showcase how blockchain technology can intersect across multiple narratives. According to him, these projects bridge the diversity of DePin, AI, and RWA tokenization narratives, offering broad utility. This contrasts with projects like Bittensor (TAO), Ondo Finance (ONDO), and Aethir (ATH), which focus on specific verticals with more targeted solutions.

“You definitely want to do at least one project touching each of these sectors, with some that encompass multiple. Diversify into leading projects, but also concentrate into the highest velocity narratives,” Kyren noted.

Indeed, portfolio diversification across the highest velocity narratives is a wise investment strategy. However, what could be even more advantageous is leveraging projects that operate across multiple verticals simultaneously, offering broader exposure and potential for growth.

Hedera (HBAR)

Hedera’s focus on scalability, low latency, and security aligns with DePin principles by decentralizing internet infrastructure and promoting censorship resistance. Hedera Hashgraph, the technology behind HBAR, provides a decentralized public network with high-throughput, secure, and fair consensus. This creates a strong foundation for developing decentralized applications (dApps). Additionally, HBAR enables efficient data transfer across the network using a Directed Acyclic Graph (DAG) structure.

While not explicitly an AI-focused project, Hedera’s architecture and capabilities can support artificial intelligence applications and machine learning algorithms. The network’s fast finality, low transaction fees, and secure consensus mechanism make it suitable for handling complex AI computations. Developers can leverage Hedera’s scalability and performance to build AI solutions on a decentralized platform, exploring the convergence of blockchain and AI.

Read more: What Is DePIN (Decentralized Physical Infrastructure Networks)?

Moreover, Hedera’s utility extends to the tokenization of real-world assets (RWA) through its native cryptocurrency, HBAR, and smart contract capabilities. With the help of Hedera Consensus Service (HCS) and tokenization standards, users can create digital representations of physical assets, securities, or commodities on the network. This facilitates the seamless transfer and trading of tokenized RWAs while ensuring transparency, immutability, and compliance with regulatory frameworks.

Internet Computer (ICP)

Internet Computer (ICP) aims to revolutionize the internet by offering a decentralized and open protocol that hosts web content and services directly on the blockchain. By decentralizing the traditional client-server model, ICP strives to create a tamper-proof, censorship-resistant internet infrastructure. This aligns with DePin’s principles by promoting a resilient, inclusive ecosystem where users interact with dApps and services without intermediaries.

In addition, Internet Computer’s architecture supports AI models and applications, leveraging its computational power and scalability. The platform’s ability to execute smart contracts at web speed and store large volumes of on-chain data makes it well-suited for AI use cases, such as decentralized AI marketplaces, predictive analytics, and autonomous systems.

Although RWA tokenization isn’t Internet Computer’s main focus, its architecture and smart contracts support managing tokenized assets. Through ICP, users can unlock liquidity, fractional ownership, and programmable features for assets like real estate and commodities. This added utility expands Internet Computer’s ecosystem and demonstrates its versatility across multiple verticals.

Read more: How Will Artificial Intelligence (AI) Transform Crypto?

By operating in diverse areas, both Hedera and Internet Computer achieve portfolio diversity and tap into multiple narrative trends. However, projects concentrated on a single vertical can also experience significant hype when their specific narratives gain momentum. Despite these possibilities, investors should always conduct thorough research before making any decisions.