Following the recent dip in the overall market, a prominent cryptocurrency analyst predicts that investors will turn to a select group of altcoins for safety. Altcoin Psycho, a well-known pseudonymous analyst with over 501,200 followers on the social media platform X, suggests that investors will rotate their funds into altcoins with market caps of at least $1 billion.

The recent market meltdown has caused investors to reconsider investing in speculative altcoins. Altcoin Psycho believes that this wipeout will lead to a flight to quality for altcoins. Once the market stabilizes, he expects mid/high-cap altcoins to experience a surge in value.

In addition, Altcoin Psycho highlights three crypto subsectors that he believes could revolutionize the digital asset industry. While he acknowledges that the majority of artificial intelligence-focused crypto projects are likely vaporware, he is confident that the remaining 1% will have a significant impact on the industry. He also mentions that tokenized real-world assets (RWAs) and stablecoins are other verticals that have the potential to bring about substantial changes.

Altcoin Psycho reiterates that artificial intelligence (AI) remains his top investment choice for the 2024 bull market. In his 2024 predictions, he expressed his strong belief in the potential of AI and is surprised that it is now considered a contrarian view. However, this only reinforces his bullish stance on the technology.

Earlier this month, Altcoin Psycho pointed out that AI crypto projects are undervalued compared to the market cap of popular memecoins like Doge and Shiba. He notes that the entire crypto AI vertical has a market cap of around $40 billion, whereas Doge alone is valued at $27 billion and Shiba at approximately $15 billion. This suggests that AI tokens are still undervalued.

As of now, the top AI coins in the crypto space have a combined market cap of $20.57 billion, according to CoinGecko.

In conclusion, Altcoin Psycho’s insights suggest that investors will seek refuge in altcoins with large market caps following the recent market dip. He believes that AI, RWAs, and stablecoins are subsectors that have the potential to drive significant changes in the digital asset industry.