Business News

Cryptoverse: AI tokens surpass bitcoin record

The artificial intelligence boom has hit the crypto market with a bang.

Coins tied to AI-focused crypto projects have surged alongside tech stocks like Nvidia, driven by investors’ insatiable appetite for applications like machine learning.

The rise of many AI crypto tokens has even outpaced that of bitcoin over the past year, with the world’s largest cryptocurrency hitting record highs.

Their combined market value jumped to $26.4 billion, up from just $2.7 billion last April, according to CoinGecko data. Tokens tied to these projects have increased between 145 percent and 297 percent over the past 30 days.

If the industry’s most optimistic predictions come true, there could be more room to maneuver, as some market watchers say crypto and blockchain technology could help solve some of the industry’s teething problems. AI, such as privacy and the need for computing power.

“As AI systems and blockchain networks continue to grow, we will see more and more use cases merging the two sectors,” said Markus Levin, co-founder of blockchain data storage company XYO Network.

The CoinDesk Indices computing index, which includes AI-related tokens, has surged more than 165% over the past 12 months, even outpacing bitcoin’s 151% rise to record highs.

AI token trading volumes have also increased sharply this year, according to data from Kaiko Research, reaching an all-time high of $3.8 billion in late February.

“There is a good chance that … AI applications are the reason crypto exists,” Matthew Sigel and Patrick Bush of fund manager VanEck said in a note.

Some of the major blockchain projects at the moment include Render Network, a blockchain platform for peer-to-peer sharing of AI-generated graphics, Fetch.AI, a platform for building blockchain applications. AI and SingularityNET, a marketplace for AI services.

“Investors are starting to realize that if you want real value, you need products that are not correlated to the crypto market,” said Ahmad Shadid, founder of AI-focused blockchain startup


AI-related blockchain products include a wide variety of services, including payments, business models, machine-generated non-fungible tokens, and blockchain-based marketplaces for AI applications where users pay developers in cryptocurrency.

Investment manager VanEck predicted that AI crypto projects’ revenue could reach $10.2 billion by 2030 in their base case, and over $51 billion in their bull case.

VanEck highlighted the use of cryptographic tokens as rewards, the development of physical computing infrastructure, data verification and transparency to prove digital ownership as key areas where blockchain technology provides real value to blockchain development. ‘AI.

Offering crypto tokens as incentives allows for rapid scalability, said io’s Shadid. His company plans to launch a token later this year.

“The reason we can scale quickly is because of the token we have,” he added. “The token incentivizes owners of physical infrastructure to connect their computers to our network,” Shadid added.

Yet, just as with the AI ​​boom itself, picking winners and losers could be fraught with challenges.

“We are still in the very early stages of integrating AI networks with blockchain-based networks, and the usefulness of many tokens is still very uncertain,” Levin cautioned.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button