The latest trend in artificial intelligence (AI) is known to feed narratives in the cryptocurrency market.
Top cryptocurrency traders The industry that could drive the following bull market cycle, according to Twitter, is AI-based tokens. Until now, they might be correct: According to data from CryptoSlate, these coins have increased by an average of 80% just this week.
Tokens like Artificial Liquid Intelligence (ALI), Fetch AI (FET), and Singularity Net (AGIX), which have increased by as much as 220%, have been some of the largest gainers.
Over a two-week period, the value of tokens issued by AI-based startups like Image Generation AI (IMGNAI) has more than tripled. With the help of text disturbances on social media sites like Discord. People are able to create artwork utilizing the protocol.
Formerly well-known tokens from 2018 and 2021 like Big Data Protocol (BDP) and Measurable Data (MDT) appear to have capitalized on the fervour with tweets that seem to remind investors of how they use AI technology in their blockchain applications.
Data from CoinGecko reveals that BDP has increased by 2,100% in the last week while MDT has increased by 150%. Both protocols employ their respective tokens to commoditize data, enabling suppliers and consumers to trade data in a private and safe manner.
Comparatively speaking, prominent cryptocurrencies like bitcoin and ether have lagged behind. Climbing only 30% each over the past month despite fundamental drivers. However, given that prominent tokens have a market capitalization of more than $300 billion. It will need massive investment and widespread attention for their prices to increase by a factor of ten within a reasonable period of time.
Why are AI tokens Gained?
AI, in its broadest sense, describes the emulation of human intelligence in computers that have been designed to think and behave like people. Up till now, the most widely used applications of this technology have been chatbots, self-driving cars, improving search in online marketplaces, and image-generation software. However, futuristic usecases foresee fully autonomous cities, cyborg humanity, and interstellar travel.
After the public debut of the chatbot ChatGPT and the image-generating programme Dall E in mid-2022. There was a significant increase in the price of AI tokens. Both were introduced by OpenAI, which recently secured $10 billion from Microsoft at a $29 billion value. They are traditional pieces of software that do not make use of blockchain or cryptocurrency.
Such institutional interest has contributed to the development of a convincing case for crypto traders to place a wager on tokens with an AI focus as the next growth industry.
The founder of the crypto services company Frontier, Ravindra Kumar. Claims that the growth opportunity in the AI and Web3 field “combines early interest, potential, and hype.” The rise of creative and compelling use cases is something we are witnessing. Despite the fact that there may be some hype around AI intervention in the crypto field.
The head of marketing at Biconomy, Aditya Khanduri, takes a more conciliatory stance. “I believe that present AI trend is still highly speculative, leading to spike for tokens like OCEAN, ALI, and AGIX. It’s less about the underlying technology now that some of the coins with greater buzz and followings have surged.
“This is because possibility the web3 projects and current AI tokens don’t have any idea about how these decentralized AI tools work. There are many unresolved issues and many things to be ironed out, Khanduri recently told CoinDesk in a chat.
Token-based usage while growing AI software, according to people like Kandhuri, is a challenging problem to overcome.
“Let’s say 250 million people utilize an AI tool. Then, how would its infrared look? How will it be used by people? The data will be taught in what way? The token’s place in the process: If you used their data to train your algorithms, can you even have a means to compensate them for it? “, he asked.
Some market observers are still hesitant to buy into the buzz surrounding AI tokens.
“All kinds of fresh trends emerge from thin air as soon as the market begins to pick up any traction. According to financial market specialist Valentina Drofa, not all of them are as reliable as they might seem.
Drofa continued, “There is a possibility that the entire ‘new trend’ would turn out to be empty hype. As there are many speculators that would aim to take advantage of short-term price pumps,” referring to the recent multifold gains made by several tokens.
“The overall industry will eventually have to deal with the long-term effects and another blow to its reputation. It’s getting really boring and depressing to keep seeing these cycles, she said.
