Top 3 Altcoins to Watch as Crypto Market Prepares for Breakout

XNET, a project based on the Solana blockchain, has recently announced a strategic partnership with AT&T, a major player in the US telecommunications industry. This collaboration aims to enhance the efficiency of mobile data traffic management by allowing AT&T to offload some of its mobile data onto XNET's decentralized network of Wi-Fi hotspots. XNET incentivizes businesses and public spaces to deploy these hotspots by rewarding them with XNET tokens, effectively creating a distributed wireless network that alleviates congestion and improves overall coverage. As part of this agreement, which has been operational since September 2024, AT&T customers can seamlessly connect to XNET's Wi-Fi network, with AT&T compensating XNET for the data usage in dollars, which is then distributed to XNET's node operators in the form of tokens. Currently, XNET boasts 688 active nodes and has facilitated connections for approximately 9 million users through its network. The co-founder of XNET, Richard DeVaul, emphasized the importance of their token in financing the network's infrastructure, stating that traditional equity or debt financing would have posed significant challenges. He described XNET as a prime example of Decentralized Physical Infrastructure Networks (DePIN), showcasing how the project has successfully utilized its token to bootstrap operations and equipment financing. This innovative approach positions XNET as a unique player in the decentralized network space, distinguishing itself from competitors like Helium Mobile, which focuses on individual hotspot installations. While both XNET and Helium Mobile operate in the decentralized network sector, XNET's business model is strictly B2B, targeting high-value locations for hotspot deployment. DeVaul noted that they view Helium as a potential customer rather than a competitor, indicating a collaborative spirit within the industry. As the demand for decentralized networks continues to grow, partnerships like that of XNET and AT&T may pave the way for more efficient and widespread internet access, ultimately benefiting users and businesses alike.

The recent downturn in the cryptocurrency market, particularly for AI-focused tokens, has been significantly influenced by Microsoft's decision to slow its data center expansion plans. In the past 24 hours, Bittensor's token has plummeted by 10%, with a staggering 24% drop over the past week. Render Token (RNDR) and Grass have similarly faced declines of 10% and 20% respectively, contributing to a 10% decrease in the overall market cap of AI tokens tracked by CoinGecko. This trend mirrors the performance of major AI-related stocks, with NVIDIA experiencing a more than 30% decline from its 2024 peak and AMD dropping 47% from its highs this year. The impact of Microsoft's announcement, which includes halting or delaying data center developments across multiple countries, raises concerns about the pace of growth in the AI sector. This news is particularly striking given Microsoft's pivotal role in AI commercialization through its collaboration with OpenAI, the creator of ChatGPT. Analysts from TD Cowen have expressed worries about a potential oversupply of data centers, suggesting that the demand may not keep pace with the rapid expansion previously anticipated. The AI boom has attracted numerous developers in the crypto space, with projects like Bittensor offering decentralized marketplaces for AI learning models, where miners earn TAO tokens by contributing computing resources. Render operates on Solana, providing a platform for users to lease GPU power, while Grass incentivizes users to earn tokens through app installations. Additionally, the decline in AI meme coins, particularly within the Virtuals Protocol ecosystem, highlights the broader market correction, with tokens like GAME seeing their valuations plummet from $350 million to just $13 million since January.

Airdrops have emerged as a prominent marketing strategy within the blockchain space, enabling projects to reward early adopters and attract new users by distributing free tokens. Participants can earn these tokens by completing simple tasks, such as following projects on social media or joining their community groups. In 2024, several notable airdrops are available, including Grass, a DePIN network that leverages idle internet bandwidth, and RetroBridge, a multi-chain token bridging platform. Other projects like WalletConnect and Rainbow Wallet are also offering airdrops, enhancing user engagement through point rewards and utility tokens. Grass, for instance, allows users to earn Grass Points by running a node on their computer, with the potential for these points to convert into tokens in the future. The project has already distributed 100 million tokens to over 2 million users in its first airdrop phase and is currently in the second phase, distributing 17% of the total supply. Similarly, RetroBridge incentivizes users through various tasks, including token bridging and social media engagement, with plans to launch a marketplace for users to exchange their earned points for tokens in 2025. As the landscape of crypto airdrops continues to evolve, platforms like Summer.fi and Zeek are also gaining traction by offering unique rewards systems. Summer.fi rewards users for engaging with DeFi protocols, while Zeek allows users to monetize their knowledge through a social network. However, participants should exercise caution, as not all airdrops are legitimate. Conducting thorough research and ensuring the authenticity of projects is crucial to mitigate risks associated with potential scams. Overall, airdrops remain a compelling way for users to engage with the blockchain ecosystem and potentially earn free cryptocurrency.

A recent report titled "The DePIN Token Economics Report" by Tom Trowbridge has shed light on the growing interest of traditional equity investors in Decentralized Physical Infrastructure Networks (DePIN). The report highlights how DePIN is revolutionizing real-world services such as Wi-Fi, energy, and computing. With over 1,000 projects and 3 million providers, DePIN has shown significant revenue traction, with hardware costs plummeting by 95% in recent years. Notably, Helium reported $350,000 in revenue for Q4 2024, while Geodnet achieved an annualized revenue of $3 million, showcasing the financial viability of these decentralized networks. Traditional equity investors, who have historically been skeptical of token projects, are now recognizing DePIN as a promising investment avenue. The report indicates that this investor demographic is significantly larger than that of alt-coin investors, primarily due to DePIN's tangible services and impressive revenue metrics. The buy-and-burn mechanisms employed by various DePIN projects, such as Geodnet and Hivemapper, further enhance the appeal by linking revenue directly to token value. This financial model provides a clearer benchmark for investors, as evidenced by Geodnet's $500,000 revenue in Q4 2024, which supports price growth in its tokens. Moreover, Trowbridge emphasizes the importance of simplicity in DePIN's token economics, suggesting that models should be straightforward to avoid confusion among investors. The report also highlights the necessity for transparency in the sector, especially in light of Helium's recent SEC charge for misleading investors. As DePIN continues to shift the narrative of cryptocurrency from speculation to utility, Trowbridge asserts that projects offering real-world services are scaling more rapidly and providing superior services at lower prices compared to their centralized counterparts. This shift could redefine the landscape of crypto investments, making DePIN a focal point for future growth in the industry.

In the ever-evolving landscape of decentralized finance (DeFi), Total Value Locked (TVL) serves as a critical metric for assessing the growth of various protocols. Recent data from Phoenix Group has revealed significant TVL increases across several projects in the past month, attracting the attention of investors and crypto enthusiasts alike. Among the top 15 projects, BUIDL has emerged as the standout performer, showcasing a remarkable 219% growth in TVL, which now stands at $1.8 billion. This tokenized money market fund, powered by BlackRock and built on the Ethereum blockchain, has seen its value triple in just three weeks, reflecting a heightened demand for secure crypto assets. Following BUIDL, Sonic (S) has secured the second position with a 171% increase in TVL, demonstrating the platform's growing influence since its rebranding from Fantom. Level Finance (LVL) comes in third with a 123% growth, attributed to its unique offerings in the DEX perpetual trading marketplace on the BNB Chain. Euler (EUL) and Sky (SKY) round out the top five, with TVL growths of 105% and 55.6%, respectively. Sky's recent rebranding from Maker to Sky has successfully attracted more users to its platform, further enhancing its market presence. Other notable projects that have seen impressive TVL growth include DeepBook (DEEP) with a 53.8% increase, Idle Finance (IDLE) at 51.9%, and Beethoven X (BEETS) with a 47.9% rise. The data highlights a vibrant DeFi ecosystem, with projects like Orderly Network (ORDER) and Pell Network Token (PELL) also making significant strides. As the DeFi space continues to mature, these growth metrics underscore the increasing interest and investment in innovative financial solutions within the blockchain realm.

The total value locked (TVL) in various cryptocurrency projects has seen remarkable growth, as highlighted in a recent research document by Phoenix Group, which utilizes data from DeFiLlama. TrueFi (TRU) has emerged as the leading project, boasting a TVL increase of $260.2k, equating to an impressive 424% surge. This growth positions TrueFi ahead of its competitors in terms of locked value, showcasing the increasing investor confidence in decentralized finance (DeFi) markets. Following TrueFi, three DeFi projects—Mint ($MINT), Maple ($MPL), and Zircuit ($ZRC)—have also experienced notable TVL growth. Mint currently holds a TVL of $1.5 million, while Maple and Zircuit report $454.4 million and $890.8 million respectively. This upward trend in TVL indicates a growing trust among investors and heightened activity within the DeFi sector, reflecting a broader acceptance of decentralized financial applications. Additionally, other protocols such as Note ($NOTE), Euler ($EUL), and Velodrome ($VELO) have shown substantial TVL increases, with values rising to $13.5 million, $377.1 million, and $66.7 million respectively. The overall growth in TVL across multiple platforms signifies a diverse and expanding DeFi landscape, driven by enhanced liquidity and user engagement. As protocols like $IDLE, $PUFFER, $BLUE, and $CPOOL report successive growth, the ongoing trends are reshaping the DeFi ecosystem, attracting more capital inflows and reinforcing the foundation of decentralized finance networks.