The start of 2023 in cryptocurrencies leads many to the conclusion that this year will be dominated by projects related to artificial intelligence (AI), a trend that is being reinforced after the emergence of Chat GPT.
Will this prediction be justified or has FOMO, i.e. fear of missing out on a prescribed big opportunity, simply prevailed in the ranks of investors and traders?
First of all, we should note that the popularity that ChatGPT has gained has further increased the interest towards AI. To this was added the marketing – advertisements made about AI-related tokens.
But the truth is that in some cryptocurrency projects, AI has been used for a long time, especially in decentralized finance (DeFi) protocols. They use AI instead of conventional algorithms, which allows them to improve over time.
Undoubtedly, as interest in AI grows, the token intersections that have any relevance to AI are following the same path. For example, we saw some tokens within seven days increase by as much as 200-300%, while some even shot up by as much as 1100% in a month.
According to CoinMarketCap, the market capitalization of AI and big data tokens is approaching $5 billion.
The three most popular tokens are The Graph (GRT), SingularityNET and Fetch.ai, while PlatON (LAT), Liquid Intelligence (ALI) and SingularityDAO (SDAO) have also risen significantly.
A few words:
- The Graph (GRT) is an open source software used to collect, process and store data from various blockchain applications to facilitate information retrieval. It uses popular decentralized Ethereum-based applications such as Aave, Curve and Uniswap.
- SingularityNET is a decentralized artificial intelligence marketplace powered by blockchain. Users can use libraries of AI algorithms created by a community of service providers. Developers earn AGIX tokens by publishing their algorithms on the platform.
- Fetch.ai combines blockchain and artificial intelligence to create a network of autonomous economic agents, or AEA. It uses AEA to connect with other AI applications to process data in real time and take action based on it. After that, economic agents can act autonomously. AEA is a solution (software entity) that can take actions without external input using its own intelligence, for the economic benefit of the owner.
Microsoft and Google on artificial intelligence
The trend of the times shows that interest in artificial intelligence is growing.
For example, last January Microsoft noted in a report that it would invest an additional $10 billion in OpenAI, and so the studio had a co-sponsor in the development of ChatGPT. Microsoft is looking to use ChatGPT’s technology to drive its products so that AI can help create Excel spreadsheets, create illustrations for PowerPoint slides, compose emails in Outlook, etc.
Also, according to Semafor, Microsoft will integrate a new version of ChatGPT called GPT-4 into its search engine, Bing, in an attempt to overtake the market leader, Google.
Google has invested about $300 million in the artificial intelligence startup, Anthropic, which was founded by former OpenAI engineers who worked on GPT-3. According to the Financial Times, Google bought a 10% stake in the startup.
Strong interest from investors
A recent JP Morgan survey of 835 institutional traders in six global markets showed that large investors have a strong interest in AI:
“53% of traders predicted that ‘AI/Machine Learning’ technology would have the greatest influence in shaping the future of trading over the next three years, with ‘API Integration’ and ‘Blockchain/Distributed Ledger Technology’ following,” the survey said.
The market reacts
The market is reacting strongly to the news about AI tokens. For example, after 6.1 million OCEAN tokens were transferred from two addresses to the Binance exchange, their price increased by 30%.
The value of FET increased by 30% on February 7, after a certain “whale” continues to buy large quantities of this token and accumulate them, according to Lookonchain.
Of course, after some posts by Elon Musk, AGIX and FET tokens became among the most popular on social networks as far as cryptocurrencies are concerned.
Bottom Line
Our conclusion, then, is caution. The popularity of OpenAI, and by extension ChatGPT, has led to the rise of even tokens that have even the slightest mention of AI on their website, even if these projects have almost no value.
Therefore, every AI token that goes up in price does not necessarily mean that it has any utility or real value. Don’t get carried away, always do thorough research.
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