AI tokens have rallied since the start of January 2023. Tokens with any relation to artificial intelligence have begun to take the interest of investors for their large potential. With such ground-breaking technology coming in during its infancy stages, many are looking to invest in the future by buying AI tokens.
However, investors may be wondering if these tokens are the next metaverse hype.
In this blog post, we will explore AI tokens and their many benefits. We will also discuss why experts believe they are the next big thing in the world of digital currency.
What Are AI Tokens?
Artificial Intelligence (AI) tokens are digital tokens on blockchain offered by Web3 projects that involve the use of artificial intelligence in their solutions. These tokens can range from AI-based investment protocols to decentralized exchanges to generative AI systems.
Why Did AI Tokens Take Off?
AI tokens took off due to the rise in interest in artificial intelligence technology. This followed the release of ChatGPT and AI-powered chatbots in early 2023. For example, the Fetch token (FET) rose by over 95% over 30 days as a result of this increased interest.
OpenAI’s AI chatbot, ChatGPT, took the world by storm during its release in January 2023 with its powerful generative AI capabilities, unlocking many unique uses. For example, ChatGPT has been shown to be great at writing emails, creating blog posts, writing scripts, and even writing programs using code!
This sparked a large interest in artificial intelligence technologies, especially in generative AI. For example, Google has plans to release its own version of an AI chatbot, Bard, in response to ChatGPT.
Within the cryptocurrency space, this interest in AI led to a rally in tokens of projects that leverage the use of AI in their products. From decentralized exchanges to investment protocols, AI tokens have been on the rise since.
What Are Some Examples of AI Token Projects?
1. The Graph (GRT)
The Graph token (GRT) has seen popularity among investors for its use of artificial intelligence technology. The Graph is an indexing protocol that indexes blockchain data using Subgraphs. The indexing uses machine learning algorithms which is a subset of AI.
2. Artificial Liquid Intelligence (ALI)
Another AI token that took the interest of the crypto market was the ALI token which gained popularity at the start of January 2023, and is offered by Alethea.AI’s Artificial Liquid Intelligence project.
Their main product involves generative AI, where images can be generated using AI through their CharacterGPT product.
The introduction of such Web3-native AI image generators may point towards a future where successful NFT projects can be generated using just AI tech.
3. Numerai (NMR)
The Numerai (NMR) token also spiked in popularity in the crypto market slightly later on, at the start of February 2023. This project gained the attention of the public for its involvement in using data science to predict events in the stock market.
The Numerai project is an AI-driven hedge fund that claims to make predictions to help with investment decisions and outperform market-neutral indexes. Their models are submitted by data scientists, who compete to provide the best prediction accuracies. Data scientists can stake their models to earn if they do well.
What Are The Benefits of AI Tokens?
1. Increased Efficiency
AI tokens offer many benefits, but perhaps the main one is increased efficiency through AI technology. Through the use of AI, projects are able to unlock more efficient product solutions and improve existing ones. Take The Graph, for example.
In the Graph protocol, AI is used in indexing blockchain data on Ethereum and Avalanche blockchain. This helps users who want to query data from these blockchains to access and extract them more efficiently.
2. Increased Security
AI tokens are also beneficial for security purposes. AI can be used to help detect malicious activities on blockchain networks, and projects that leverage this technology can provide improved security features and better protection against attacks.
One such example of boosted security through the use of AI in Web3 is smart contract optimization. Through the large-scale analysis of data, AI can help spot vulnerabilities and anomalies that help to indicate fraudulent activity.
3. Improved Investment Returns
Finally, AI tokens can potentially lead to improved returns on investments.
As seen with the Numerai project, investment decisions can be made more intelligently with the use of AI technology.
Based on their products, investors can:
- Have a highly diversified portfolio that’s market, country, sector, and factor neutral
- Have a concentrated portfolio of highest conviction stock selections
Beyond the crypto space, AI trading software has also been gaining traction in recent years. This could be the starting point for more innovative financial technology through the use of AI.
All in all, AI tokens have been gaining a lot of attention since January 2023—a result of increased trust in AI technology and its use. With the potential benefits they offer, it’s no surprise that more people are taking an interest in these tokens.
As the technology continues to develop, we can expect to see even more projects and tokens leveraging AI in their products.
Will AI Tokens be the next Metaverse hype?
But will AI tokens be the next metaverse hype? It’s hard to say at this point, but the potential is definitely there.
AI tokens can offer many benefits that could make them attractive investments. As more projects continue to launch and take advantage of AI technology, we may see a surge in interest in these types of tokens.
Some of them may even have AI applications in the Metaverse. For example, AI image generator projects can be used to generate NFTs as playable characters in a Metaverse game.
However, it remains to be seen whether or not the market will truly embrace AI tokens and make them the next big thing in cryptocurrency investments.
Until then, investors should do their own research, stay updated on cryptocurrency news and do their due diligence before investing in any token. Only time will tell if these tokens become the new metaverse hype.
Will AI Tokens be the next crypto trend?
It’s hard to predict whether AI tokens will become the next big crypto trend, but they certainly have potential.
As more projects develop and leverage AI technology, we may see a surge in interest from investors due to their increased efficiency, security features, and potentially improved investment returns.
How will artificial intelligence affect cryptocurrencies?
Artificial intelligence has the potential to significantly affect cryptocurrencies. It can be used to improve current issues with cryptocurrencies—security and scalability.
AI can also help with the scalability of cryptocurrency networks by allowing for faster transaction speeds, improved accuracy of analytics, and better detection of malicious activities. Additionally, AI-powered platforms such as Fetch.AI could potentially revolutionize how we interact with the blockchain.
Final thoughts
Overall, the integration of AI technology into cryptocurrency networks has the potential to positively impact the industry in a number of ways—in efficiency, security, and potential investment returns.
As more Web3 projects continue to use AI in unique ways, we may see a surge in interest from investors who are looking to benefit from the potential of these technologies.
Author Bio
Austin Chia is the Founder of AnyInstructor.com, where he writes about Web3, data, and all things tech. A believer in the potential of blockchain and the future of cryptocurrencies, he hopes to help others discover more about the potential of emerging technologies through content.
