Crypto AI Tokens Surpass Record-Breaking Bitcoin : odasiooi klcvklfd iioqw lsaoiuvcxe

The crypto market has been electrified by the surge of artificial intelligence (AI) projects, mirroring the explosive growth seen in tech stocks like Nvidia. Investor demand for machine-learning applications has propelled the rise of coins associated with AI-focused crypto projects, outpacing even the meteoric ascent of bitcoin over the past year.

According to CoinGecko data, the combined market value of AI-linked tokens has skyrocketed to $26.4 billion from just $2.7 billion last April. Tokens associated with these projects have surged between 145% and 297% in the past 30 days alone.

The CoinDesk Indices Computing Index, which encompasses AI-linked tokens, has surged over 165% in the past 12 months, surpassing even bitcoin’s 151% rise to record levels.

Trading volumes in AI tokens have also surged, reaching an all-time high of $3.8 billion in late February, according to Kaiko Research data.

Markus Levin, co-founder of XYO Network, a blockchain data storage firm, predicts increasing fusion between AI systems and blockchain networks, leading to innovative use cases that address issues like privacy and computing power.

Blockchain projects like Render Network, Fetch.AI, and SingularityNET are among the top players in the AI blockchain space, offering platforms for peer-to-peer sharing of AI-generated graphics, AI app development, and AI services marketplaces, respectively.

Investors are increasingly recognizing the value of products uncorrelated to the crypto market, driving interest in AI-focused blockchain projects, according to Ahmad Shadid, founder of AI-focused blockchain startup io.net.

VanEck, an investment manager, forecasts that revenue from AI crypto projects could reach $10.2 billion by 2030 in their base case scenario and over $51 billion in their bullish scenario. They highlight crypto tokens’ role in incentivizing various activities within AI development, such as rewards, physical computation infrastructure, data verification, and digital ownership transparency.

However, picking winners and losers in the AI blockchain space remains challenging, as the utility of many tokens is still uncertain in the early stages of AI networks integrating with blockchain-based networks, cautions Levin.

Published

Leave a comment

Your email address will not be published.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