AI Stocks May Be Overpriced: Why Zcash and Solana Are Alternatives

Investors looking at AI stocks may want to consider alternatives like Zcash and Solana. The high prices of AI stocks, such as Arm Holdings, are a bet on continued growth in data centers for large language models. However, this bet could fall flat, leaving investors with losses.

Zcash is a privacy coin based on Bitcoin with a capped supply and features that keep users' information private. It has recently gotten around regulatory obstacles by allowing selective disclosure of information. A spot Zcash ETF holds over $500 million in assets, and Cypherpunk Technologies, which owns 1.9% of the circulating supply, aims to hold 5%. The limited concession on privacy has enabled Zcash to gain a foothold in regulated assets.

Solana's tokenized stocks are driving its next leg of growth, with $448 million in tokenized assets parked on the network as of September 18. Solana also handles most on-chain equity trading volume and has recently adopted the x402 standard for charging fees to access specific pages or information.