Are AI Crypto Tokens Over?
Many AI & Big Data Tokens were also affected by the slide in cryptocurrency prices. The Graph, the biggest AI token by market capitalization, fell as much as 13.65% in the last 24 hours and was trading as low as $0.1519. The question is: Was the rally after a J.P Morgan report stating that traders are turning their attention towards Artificial Intelligence instead of blockchain a crypto proxy for the AI bubble?
Deep Shade of Red: AI Crypto Tokens
On February 10, 2023, the AI crypto market was in bearish mode. SingularityNET and Ocean Protocol, Graph, Fetch.ai and Ocean Protocol all suffered losses. According to Coinmarketcap.com data, the AI crypto market fell 10.61 percent to $4.4 billion
Data shows that the price of The Graph (GRT), one of the most valuable AI crypto tokens, has fallen more than 10% in the past 24 hours, after it gained almost 64.23 percent in the previous week. AGIX, the token for Singularity NET has dropped more than 7% in 24 hours, after a shocking 101% increase in the last seven days. Oasis Network, which is the third-largest AI cryptocurrency in circulation, has also lost 14 percent. Other tokens have also suffered similar losses.
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Experts and their Opinions
Current trends are often what fuel the cryptocurrency market. This can lead many people, especially newbies, to invest in projects that promise promising results but quickly turn into ashes. Unfortunately, AI crypto tokens run the risk of becoming another hype-fueled obsession in the industry.
Forbes recently shared the opinion of Vasco Lopes (a researcher in blockchain and artificial intelligence at the NOVA school near Lisbon, Portugal), who expressed his strong opinions with Forbes.
“The rise of the price for AI-related cryptocurrency can be attributed to tangible developments in the AI/blockchain industries. AI-related cryptocurrency are also affected by investor sentiment and hype. For example, the popularity of AI and AI related products like OpenAI’s ChatGPT language modeling generates excitement and interest.
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Noelle Acheson, former Head of Research CoinDesk and Market Insights Genesis Trading, spoke out about TRON DAO’s recent move to establish a $100 million Artificial Intelligence Development Fund. She said that the moves felt like traders looking for hot narratives, regardless of actual value.
Conclusion: JPMorgan’s “The eTrading Edit” report shows that 53% of institutional traders cited AI/machine learning over the blockchain. Experts still believe that AI crypto tokens can be a risky investment.
About the author
The content presented may contain the author’s personal opinion and is subject to market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.