The cryptocurrency market is witnessing a significant surge in AI-related tokens, with their market value skyrocketing from $2.7 billion to $26.4 billion in a year, according to CoinGecko data, Reuters reported on Tuesday.
This growth, which has seen tokens increase by up to 297 per cent in the last month, is propelled by the tech sector’s advancements in machine learning and AI applications.
Bitcoin, although reaching record highs, has been outperformed by these AI crypto tokens. The CoinDesk Indices Computing Index, inclusive of AI-linked tokens, has soared by 165 per cent in the past year, surpassing bitcoin’s 151 per cent rise.
The fusion of blockchain and AI technologies promises to address AI industry challenges, including privacy and computational demands.
Notable blockchain projects like Render Network, Fetch.AI, and SingularityNET are at the forefront, offering AI-generated graphics sharing, AI app development, and an AI services marketplace, respectively.
As trading volumes hit a peak of $3.8 billion in February, industry experts suggest that AI applications might become the core purpose of cryptocurrencies.
This trend reflects a growing investor realisation that genuine value lies in products independent of the crypto market’s fluctuations.
