A New Wave Of AI Hype Is Sweeping The Cryptocurrency World

Crypto tokens linked to artificial intelligence are gaining popularity.

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The majority of crypto enthusiasts pride themselves on their ability to be tech visionaries. In fact, they were among the first to support innovative blockchain technologies as well as adopt Web3 and NFTs as well. There's a new innovation catching the public's attention, and generating a lot of buzz in the crypto world right now: It's called ChatGPT. It all started last year when OpenAI's new chatbot sparked a discussion about the future of artificial intelligence. In addition to this, it has gained a lot of attention recently because of its ability to craft human-like responses and even score well on exams from Wharton.

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There has been a rapid rise in crypto tokens that are AI-linked in the midst of the hype. In the early part of February, tokens such as SingularityNet and SingularityDAO soared in value in a matter of days. Investors should be aware that as the fervor grows, there are also concerns, as some industry insiders warn against being too bullish on the environment.

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The market capitalization of AI crypto assets has reached a market capitalization of $4.27 billion, an increase of 56% compared to last week, according to estimates. In spite of the fact that this constitutes only 0.4% of the $1.07 trillion cryptocurrency market, it has attracted significant attention because of the rapid increase in the use of artificial intelligence in this field.

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There is no doubt in my mind that the hype is there. Crypto AIs are led by the GRT token from The Graph, which has gained 87% over the past week, and 150% over the last month, as well as over the last year, and is leading the way. The Graph Network is the system that facilitates the querying of blockchain data without having to go through a server in order to do so. The AGIX token, which is the underlying asset of Singularity NET, which is building a marketplace for AI programs on the Singularity NET platform, has gained 116% in seven days and an astonishing 327% in one month on average. As a third crypto AI, we have Fetch's FET, whose price has risen 57% over the last seven days and has risen 140% over the last month, which makes up the top three crypto AIs. Fetch enables various types of blockchain and artificial intelligence technology to be connected together in a way that makes sense.

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ChatGPT, an AI-powered chatbot that can generate images out of word-based descriptions, as well as Dall-E, a tool developed by OpenAI that produces images out of word-based descriptions, have been driving much of the hype, both of which have grown rapidly. However, in spite of the merits of the blockchain AI initiatives, Lopes feels that technologies like ChatGPT create a sense of interest and FOMO [fear of missing out] about everything that has to do with artificial intelligence, regardless of their merits.

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This week, there has been an upsurge in the price of several crypto tokens representing artificial intelligence (AI), but the price movements seem to be more of a crypto proxy for the AI bubble than anything else. Several reports from J.P. Morgan suggest that traders are increasingly turning their attention to artificial intelligence rather than blockchain as a result of the recent rally in cryptocurrencies.

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A $100 million AI development fund was launched by TronDAO on Wednesday, adding fuel to the fire. The fund is intended to encourage the fusion of artificial intelligence technology with blockchain technology. TronDAO is responsible for making decisions regarding the Tron blockchain, and its new fund will be dedicated to artificial intelligence applications, such as payment services, blockchain oracles, and content production. The TRX cryptocurrency, which is the governance token of the Tron blockchain, fell nearly 3% in value today following the news, according to Nomics.

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Traders on Wall Street have not been spared this AI seduction—AI has surpassed blockchain as the technology expected to have the largest impact on the financial markets in the next three years, as the result of a J.P. Morgan report. Traders surveyed in this study, up from 25% last year, said that AI and machine learning will be the most influential technology for them in the coming years, according to the study. Only 12% of the votes were given for Blockchain to be the most influential technology in 2022, tying it with artificial intelligence.

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The analysts have also pointed out that crypto investors have a general risk-on-investment mentality, mainly due to favorable macroeconomic conditions as a result of a decrease in inflation and a slowdown in the increase of U.S. interest rates. As a result of these price movements, Acheson says that he believes they are now indicative of the dissipation of the overall fear that dominated the market at the end of last year.