The AI-crypto field attracts the attention of digital currency investors
Bitwise research analyst said that the combination of AI and blockchain is likely to find a place in the market, but more time is needed to evaluate the effectiveness of combined projects.
Projects that combine two trends leading the current technology "wave", digital currency (cryptocurrency) and artificial intelligence (AI) called AI-crypto, are increasing significantly, attracting investors' attention.
According to data company Kaiko, in early February 2023, the volume of the largest AI-incorporated cryptocurrencies, including SingularityNET, Fetch.AI and Render, traded on average reached 1 billion USD per day, marking a record in 2 years
AI-linked blockchain products are used in a variety of services including payments, transaction models, and blockchain-based marketplaces for AI applications, in which users pay providers. digital currency development.
Eric Chen, CEO of decentralized finance platform Injective Labs, said this is an example of the first applications of AI in blockchain at scale.
However, Mr. Chen also noted that the digital asset space is inherently associated with market "fever", speculation and excessive expectations, so investors need to be cautious.
To date, investments in AI-crypto show great profit potential. The CoinDesk Compute Index, which includes AI-linked tokens (digital assets), is up about 60% this year.
This index increased significantly in February 2023 in the context of ChatGPT chatbot developed by OpenAI seeing a surge in users.
Kaiko analyst Dessislava Aubert said that while the volume of tokens traded decreased in March 2023, the value of these tokens remained above the long-term average of the cryptocurrency sector, with profits of Many tokens are even higher than Bitcoin, with profits ranging from 150-180%.
Investment in this field also increased by 10 million USD in the past month. The case for CryptoGPT is an example, where users can sell their data to AI companies
Despite the potential profits, the AI-crypto sector is still considered a "niche" market. The total market capitalization of AI-crypto coins according to CoinGecko is 2.7 billion USD, much lower than the crypto market worth 1,200 billion USD.
Many experts warn that some AI-crypto projects may just be developing based on trends, instead of based on a sustainable development strategy, meaning that the number of people who actually benefit from these investments will be limited. not much.
Bitwise research analyst Ryan Rasmussen said that the combination of AI and blockchain is likely to find a place in the market, but more time is needed to evaluate the effectiveness of combined projects.
Investors hope to find truly valuable AI-crypto projects, helping to attract more investment in blockchain products and ensure profits. Portfolio manager at Vanetsk Pranav Kanade classifies AI-crypto into two categories, those that bring short-term benefits and those that are investments for the long term.
Many experts believe that the blockchain-based market is an opportunity for system developers who want to expand market share, as well as facilitate user exposure to new AI technologies. SingularityNET is one such market, as the token's market capitalization skyrocketed from $52 million to $414 million this year. Another potential application for the AI-crypto market is to use blockchain to distinguish between AI-created and human-developed content.
Investors hope that some outstandingly successful investments can compensate for the risks they have accepted when choosing to invest in this new field./.
