The Artificial Intelligence boom has hit the crypto market hard.
Coins tied to AI-focused crypto projects have surged along with tech stocks like Nvidia, driven by investors' insatiable appetite for applications like machine-learning.
The growth of many AI crypto tokens has even outstripped that of Bitcoin last year as the world's largest cryptocurrency reached record levels.
Their combined market cap has grown from just $2.7 billion to $26.4 billion last April, according to CoinGecko data.
Tokens associated with these projects have increased between 145% and 297% over the past 30 days.
If more optimistic industry predictions come true, there may be more room for further growth, as some market watchers say crypto and blockchain technology could solve some of the AI industry's teething problems such as privacy and the need for computing power. Can help to do.
“As both AI systems and blockchain networks continue to grow, we will see more and more use cases connecting the two industries together,” said Marcus Levin, co-founder of blockchain data storage firm XYO Networks.
The CoinDesk Index, which includes AI-linked tokens, has jumped more than 165% over the past 12 months, even outpacing Bitcoin's 151% surge to record levels.
Trading volume in AI tokens has also grown rapidly.jpg)
this year, reaching an all-time high of $3.8 billion in late February, data from Kaiko Research shows.
“It is very likely that … AI applications will be a central focus of crypto,” Matthew Siegel and Patrick Bush of fund manager VanEck said in a note.
Some of the top blockchain projects at the moment include Render Network, a blockchain platform for peer-to-peer sharing of AI-generated graphics, Fetch.AI, a platform for building AI apps, and SingularityNET, an AI services marketplace.
“Investors are starting to realize that if you want real value, you need products that are uncorrelated to the crypto market,” said Ahmed Shadid, founder of AI-focused blockchain startup io.net.