AI Tokens Exhibit Strong Momentum, Outshining Bitcoin and Ethereum

AI Tokens Exhibit Strong Momentum, Outshining Bitcoin and Ethereum

Binance Research reports AI tokens like Fetch, Ocean, and Oraichain gained 185% in 3 months, ranking 2nd (excluding memecoins) and outperforming most other sectors of the crypto market.

The rise of artificial intelligence (AI) technology in 2023 can be attributed to the widespread use of AI chatbots like OpenAI’s ChatGPT, Google’s Bard, Microsoft’s Bing Chat, and others. Particularly, OpenAI’s ChatGPT reached 100 million users in just two months,s surpassing social media platforms like TikTok and YouTube.

AI and the blockchain industry

The fusion of artificial intelligence and the blockchain industry has become a vital narrative in the industry. Increased AI searches on Google worldwide depict the public’s interest in AI and the growing public engagement in AI-related topics. This surge in interest could be owing to the popularity of AI chatbots, the launch of new AI tools, as well as increased media coverage and a desire to learn about AI.

The search trends show a clear divergence between the growing interest in AI and the relatively stable interest in Bitcoin and Crypto. Thus, AI has been capturing the public’s attention at an increasing rate, with no apparent signs of interest waning so far.

AI Tokens Exhibit Strong Momentum, Outshining Bitcoin and Ethereum

Source: CoinGecko

The combination of AI and blockchain technology has also stirred up massive excitement about the potential of these technologies in the digital landscape. The increasing popularity of AI tokens as reflected in online search trends shows an ongoing acceleration of the AI narrative.

Significantly, we are at a point of adoption even as several AI-powered crypto projects are in their early stages. However, the rise in tangible use cases is an encouraging trend that is positive for long-term growth.

Notwithstanding, according to experts, investors must balance capitalizing on the AI hype while having a clear understanding of the risks associated with investing in AI technology.

AI tokens see huge gains

According to Binance Research, crypto tokens associated with artificial intelligence saw gains in the three months leading up to Jan. 2, 2024. AI tokens were the second-highest performing category after Ethereum layer 2s, excluding memecoins.

According to a Dune Analytics dashboard by Cryptokoryo research, AI tokens were the third-best-performing category when including memecoins.

The six coins as AI tokens are SingularityNET (AGIX), Cortex (CTXC), Fetch (FET), Ocean Protocol (OCEAN), Oraichain (ORAI), and Render (RNDR). These tokens increased in price by over 185% in the three-month period.

However, DeFI 2.0 tokens also saw an 87% increase in price, GameFi 109%, and Real World Asset (RWA) tokens a 145% increase. Layer-2s posted the best returns, with a 221% gain.

AI tokens outperformed bitcoin and ethereum

Over the year, AI tokens also outperformed major cryptocurrencies such as bitcoin (BTC) and ether (ETH), with BTC ending the year up 154% while ETH gained by 44%. FET was the top performer in the group of AI coins, with a price increase of 659% for the year.

AI Tokens Exhibit Strong Momentum, Outshining Bitcoin and Ethereum

Source: Binance Research

The blockchain network called Fetch runs AI programs known as ‘agents’ and features a marketplace of AI services.

SingularityNET got the second-highest rate of return for these coins, and it posted a 616% gain for the year. SingularityNET offers an AI services marketplace on the Ethereum network and hopes to add other networks later. Ocean Protocol, which gained 215%, and Bittensor (TAO), which posted a 191% gain, are other notable AI coins.

Image credits: Shutterstock, CC images, Midjourney, Unsplash.