Forget AI Stocks: 2 Cryptocurrencies to Consider Buying Instead

The narrative continues to build that the AI boom is about to go bust. Valuations are at stratospheric levels, the buzz around the upcoming Anthropic IPO is off the charts, and trillions of dollars continue to be invested in money-losing AI businesses.

If the AI sector cools off, the good news is that the crypto sector is starting to heat up again. Nearly a dozen top cryptocurrencies have skyrocketed by more than 100% this year. If you're ready to “forget” AI stocks, here are two of the best cryptos to put on your investment radar.

Hyperliquid exchange growth

The standout performer in the crypto market this year continues to be Hyperliquid (HYPE -5.46%), which is up 220% for the year as I write this. Since launching in November 2024, the HYPE token is up a head-spinning 2,376%.

Hyperliquid is a decentralized exchange primarily for trading perpetual futures, which are also called “perps.” By some estimates, Hyperliquid controls as much as 70% of the market for perps on decentralized exchanges. That makes it the market behemoth, and for good reason. Hyperliquid has attracted the attention of some of the biggest names on Wall Street.

The problem is that Hyperliquid is based offshore in Singapore, and that has put it on dubious regulatory footing in the U.S. In fact, Hyperliquid is still off-limits to U.S. investors. You can buy the HYPE token, but you can't trade on the HYPE platform.

However, plans are now afoot to bring Hyperliquid to the U.S. market. Even President Donald Trump has joined the conversation, suggesting in August that regulators should find some way for Hyperliquid to open for business in the U.S. market. That's hugely bullish for Hyperliquid's future growth prospects.

Moreover, a new spot Hyperliquid exchange-traded fund (ETF) started trading in May. That opens the door considerably for investors trying to get exposure to HYPE. You can now buy the Bitwise Hyperliquid ETF (BHYP -5.86%) just as easily as you buy a tech stock. That's a good sign for Hyperliquid, as it continues to gain mainstream appeal.

But growth is not guaranteed. The bull case for Hyperliquid rests on a few key assumptions. First, and most importantly, it assumes that Hyperliquid will get regulatory approval to operate in the U.S., without the need for elaborate workarounds. Second, it assumes that the perpetual futures market will continue to grow by leaps and bounds, and Hyperliquid will remain the market leader. Third, it assumes that spot Hyperliquid ETFs will continue to see surging investor inflows throughout 2027.

Zcash and privacy coins

Another standout performer this year has been Zcash (ZEC -11.33%), which is up 136% year to date. Based on this recent performance, Zcash recently joined Hyperliquid among the 10 biggest cryptocurrencies in the world, with a $20 billion market cap.

Just as with Hyperliquid, there is a new spot ETF for Zcash. By all accounts, the new Grayscale Zcash ETF (ZCSH -12.15%) has been a smash success, with over $1 billion in assets under management (AUM) within the first 30 days. That makes it one of the most successful new ETF launches of the past decade.

Zcash's primary claim to fame is that it has become the top privacy coin in the world. It offers anonymous, secure, and censorship-free transactions on the blockchain. In other words, if you want to move money around online, nobody needs to know you're doing it.

This privacy angle has been remarkably powerful as a way of bringing in new investor money over the past 18 months. Other privacy coins have also been performing well. Monero (XMR +1.01%), for example, is up more than 40% this year, and now ranks among the top 15 cryptocurrencies in the world.

Can Zcash and other privacy coins keep up this remarkable momentum? That's still uncertain. After all, after it hit an all-time low in July 2024, Zcash looked like it had completely fallen out of favor with investors. It's still down a heart-stopping 80% from its 2016 highs.

Other crypto investment prospects

Of course, there are other cryptos to choose from if you are looking for a high-upside investment. However, some of them, such as NEAR Protocol (NEAR -8.57%) and Venice Token (VVV -4.37%), are too tied to the AI boom for investors who are looking to get away from AI investments.

Both Hyperliquid and Zcash are top 10 cryptocurrencies by market cap. Both have spot ETFs, and both rank among the top-performing cryptocurrencies of 2026. If you're concerned about overheating valuations in the AI sector, both could be worth a closer look.