AI Tokens are overtaking cryptocurrency market after the surge in AI. Coins associated with AI-focused crypto projects have risen in value in parallel to tech stocks such as Nvidia (NVDA.O) as investors’ constant hunger for applications such as machine learning has boosted their value. In the past year, the rise of numerous AI crypto tokens has surpassed that of bitcoin, the largest cryptocurrency in the world, which reached all-time highs last year.
According to data from CoinGecko, their aggregate market value has soared to $26.4 billion, up from $2.7 billion last April. For the last 30 days, tokens associated with these projects have risen in value by 145% to 297%.
Many people in the market think that blockchain and crypto could help the AI industry get past some of its early problems, like privacy and the need for more computing power. If these statements come true, there might be more room to grow.
Marcus Levin, co-founder of blockchain data storage company XYO Network, predicted that “As both AI systems and blockchain networks continue to grow, we will see more and more use cases fusing together the two industries.”
Over the last 12 months, the CoinDesk Indices Computing Index—which includes AI tokens—has jumped over 165%, surpassing even Bitcoin’s record-breaking 151% gain. Kaiko Research data also showed that trading volumes of AI tokens have soared this year, reaching a record high of $3.8 billion at the end of February.
The Biggest Cryptocurrency In The World
“There is a significant chance that… AI applications will be crypto’s raison d’être,” wrote Matthew Sigel and Patrick Bush of fund manager VanEck.
The Render Network, an AI-generated picture-sharing network on the blockchain; Fetch.AI, an app development platform; and SingularityNET, a marketplace for AI services, are among the most prominent blockchain initiatives right now.
“Investors are starting to realize that if you want real value, you need products that are uncorrelated to the crypto market,” stated Ahmad Shadid, founder of Io.net, an AI-focused blockchain business.
AI Tokens Kick Off
Coins associated with AI-focused crypto projects have risen in the last year.
A line graph displaying the rise and fall of the CoinDesk index and the value of AI tokens on the market
Victors And Victims
Services like as payment processing, trading models, blockchain-based markets for AI applications where customers pay developers in cryptocurrency, and machine-generated non-fungible tokens are all part of the AI-linked blockchain product suite.
According to investment company VanEck, under their base case scenario, revenue through AI crypto projects might reach $10.2 billion in 2030, and in their bullish scenario, it could reach over $51 billion.
Blockchain technology adds practical value to artificial intelligence research and development in several ways, according to VanEck. These include creating physical processing infrastructure, using crypto tokens for rewards, verifying data, and being transparent about digital ownership.
According to io’s Shadid, giving crypto tokens in incentives enables prompt scalability. His company is scheduled to launch a token later this year. “The reason we can scale fast is because of the token we have coming out,” said the CEO. “The token incentivizes owners of physical infrastructure to bring their computers to our network,” he said.
However, predicting who will succeed and who will fail could be just as risky as the AI boom. “We’re still in the very early stages of AI networks integrating with blockchain-based networks, and the utility of a lot of tokens is still very much uncertain,” he said.
