Hype vs Reality of AI Crypto Tokens: How will Bitcoin (BTC), react in the coming days?
AI Crypto Tokens: AI crypto tokens are the new buzzword in the crypto market. These tokens are experiencing a rapid rise in value, reminiscent of the 2021 memecoin rally. All the hype is due to ChatGPT’s meteoric rise and the introduction of AI-based applications. Crypto traders should be cautious about investing in cryptocurrencies because of the AI factor. Investors should look at the crypto project to ensure that artificial intelligence is being used in a meaningful way.
Also read: Artificial Intelligence-based token, SingularityNET(AGIX), becomes the Most-Purchased Tokens by ETH Whales
What are AI Tokens?
Many believe that cryptocurrencies that use AI technology to scale up for different purposes are AI-based crypto tokens. Trading is at risk from tokens being misrepresented as AI-based due to the hype surrounding these coins. Much will depend on how the AI technology evolves to be capable of powering these crypto projects without any human intervention. Many of these AI tokens are still in development and may not be fully functional.
SingularityNET and The Graph (GRT), two tokens that have seen a lot of growth in recent weeks, are based on the buzz around AI in the crypto market. The last few weeks have seen a huge increase in search traffic for terms like “cryptoAI”.
Bitcoin Market Intact
As with all new categories of cryptocurrency, there are questions about the market share of Bitcoin (BTC), and if the AI token market will eat into the altcoin market. BTC has been rising for years due to its strong fundamentals, and the idea of its’store-of-value’ application. Bitcoin’s macroeconomic environment continues to influence it, as demonstrated by recent market events surrounding the comments of US Fed Chair Jerome Powell.
Also read: Bitcoin News: After 11 years, a dormant Bitcoin wallet wakes up and makes 200,000% profit
Bitcoin has maintained a 40% market capitalization share among major cryptocurrency platforms for close to two decades.
About the author
The content presented may contain the author’s personal opinion and may not reflect current market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.