The burgeoning field of artificial intelligence (AI) has ignited investor enthusiasm, pushing coins associated with AI-focused crypto projects to unprecedented heights. As Reuters reported, the surge mirrors the trajectory of tech stocks such as Nvidia, driven by an insatiable appetite for applications such as machine learning.
According to recent data from CoinGecko, the total market value of these AI-linked tokens has soared to a staggering $26.4 billion, up from $2.7 billion last April. Over the past year, these tokens have even outpaced Bitcoin's meteoric rise, posting gains of 145 percent to 297 percent in the past 30 days alone.
Experts speculate that this fusion of AI and blockchain technology could potentially address some of the challenges facing the AI industry, including privacy concerns and the need for increased computing power. doing. As reported by Reuters, Marcus Levin, co-founder of blockchain data storage company It will continue to increase.”
Increase in transactions
The CoinDesk Index Computing Index, which includes AI-related tokens, has risen more than 165 percent over the past year, outpacing even Bitcoin's 151 percent rise. According to data from Kaiko Research, the trading volume of AI tokens has increased rapidly, reaching an all-time high of $3.8 billion in late February.
VanEck fund managers Matthew Siegel and Patrick Busch said, “AI applications are extremely likely to become the raison d'être of cryptocurrencies,'' Reuters reported.
Prominent blockchain projects in this space include Render Network, Fetch.AI, and SingularityNET, which provide a platform for various AI applications.
As reported by Reuters, Ahmad Shadid, founder of io.net.AI, an AI-focused blockchain startup, said, “If you're looking for real value, you should look at the crypto market and its correlation. “Investors are starting to realize that they need products that don't exist.”
AI collaboration service
Blockchain technology has enabled a host of AI-related services, from payment and transaction models to machine-generated non-fungible tokens and blockchain-based marketplaces for AI applications. VanEck predicts that revenue from AI crypto projects could soar to $10.2 billion by 2030 in his base case and more than $51 billion in his bullish outlook.
Shadid emphasized the scalability gained by offering crypto tokens as incentives. “The reason we can scale so quickly is because of the tokens we have out there,” he explained. “This token incentivizes physical infrastructure owners to deploy their computers onto our network.”
But amid the excitement surrounding the AI boom, there are voices of caution about the uncertainty inherent in choosing winners and losers. Levin cautioned that “the integration of AI networks and blockchain-based networks is still in its infancy, and the usefulness of many tokens is still very uncertain.”
Disclaimer: Crypto products and NFTs are unregulated and can be extremely risky. There may be no regulatory remedy for losses from such transactions. Cryptocurrencies are not legal tender and are therefore subject to market risks. Readers are advised to seek professional advice and carefully read the offer document together with relevant key literature on the subject before making any type of investment. Cryptocurrency market predictions are speculative and investments are made at the reader's sole expense and risk.
