The crypto market has started to bounce back toward the end of the month, even though prices dropped earlier. While top coins like Bitcoin and Ethereum are moving sideways without major changes, some smaller altcoins are seeing huge price jumps and outperforming the rest of the market.

One standout is Humanity Protocol, which has surged by an impressive 232%. This project is focused on creating a decentralized digital identity system that links blockchain activity to real human verification. It’s being called a Web3 version of “proof of humanity.” More DeFi apps that rely on user identity are starting to use this protocol, and there’s growing excitement around using blockchain for decentralized KYC (Know Your Customer). As a result, Humanity Protocol’s market cap has climbed above $770 million.

Another big mover is Virtuals Protocol, a project combining artificial intelligence with the metaverse. It focuses on Web3 gaming, digital avatars, and virtual social experiences. Just in the past 24 hours, its price has jumped 48%. With close to $1 billion in trading volume, many investors are betting that interest in AI and the metaverse is coming back strong in the crypto space.

These altcoins show that despite uncertainty in the larger market, innovation in areas like digital identity and AI-powered virtual worlds is driving strong momentum.