In the cryptocurrency industry, it’s common to see sudden and explosive trends where specific projects soar high and outperform the rest of the market by a significant margin.
In 2023, there have already been a few of these trends, but one, in particular, has caught people’s attention: the trend of projects that focus on Artificial Intelligence solutions.
Upon closer examination, it’s clear that many AI-related crypto projects have significantly outperformed the rest of the industry, increasing their value substantially.
This article will examine why this trend has appeared, what has driven it, and which crypto projects are the most well-known in this space.
Let’s delve into the details.
Tech Giants Spending Billions
The rise of specific trends in the cryptocurrency industry can often be traced back to external factors. In this case, one such factor was the increasing popularity of AI-based models like ChatGPT, which garnered attention from major players in the tech industry, including Microsoft.
On January 23rd, 2023, Bloomberg reported that Microsoft had invested $10 billion in OpenAI, the company behind ChatGPT. This was not Microsoft’s first investment in OpenAI, as the tech giant had previously invested $1 billion in the company in 2019.
OpenAI also disclosed utilizing Microsoft’s cloud-based service, Azure, to train all its models. The primary objective of this investment was to enable OpenAI to further its independent research and development activities.
The Trend In Crypto
The exact moment when the Artificial Intelligence (AI) trend in the cryptocurrency market started cannot be pinpointed with certainty. Still, it was around that time when the value of several cryptocurrencies related to AI began to rise.
However, as is often the case, the surge in demand for AI-related crypto projects also boosted several shady projects that had merely included the term “AI” in their name, leading to a rise in their market value.
Despite this, many legitimate crypto projects are backed by substantial resources and actively involved in developing the intersection between crypto and AI. Nonetheless, there are still many dubious projects out there that are operating in this space.
In the next section, we will look closely at some of the most well-known AI-based cryptocurrencies in the market.
The Graph (GRT)
The Graph is a protocol designed to index and query networks like Ethereum and IPFS. These networks are used by projects that have complicated intelligent contracts, such as Uniswap and the Bored Ape Yacht Club NFT collection, to store information on Ethereum’s network. However, reading anything beyond primary data directly from the blockchain can be challenging.
The Graph solves this problem by providing a decentralized protocol that indexes and efficiently queries network data. This is done without getting too technical, and you can find more details on how it works here.
According to many reports, The Graph uses artificial intelligence to do for these networks what Google did for the internet.
GRT, has seen a significant surge in value since the beginning of 2023.
SingularityNet is not just a typical crypto project. Instead, it functions as an entire ecosystem with a strong foundation in artificial intelligence. The platform is designed to be open and decentralized, allowing developers to offer AI services through blockchain-based technology.
Anyone with an internet connection can access these services. Developers can earn income by accepting that SingularityNet primarily focuses on developing an “Artificial General Intelligence (AGI)” that will ultimately lead to a beneficial technological singularity. It’s worth mentioning that the platform operates on two intelligent contract networks, Ethereum and Cardano.
It’s remarkable to note that in 2023, AGIX emerged as one of the top-performing cryptocurrencies in the market. Overall, SingularityNet is an innovative and groundbreaking platform that aims to revolutionize the field of AI through its decentralized and open ecosystem.
Fetch.ai has developed a blockchain platform that incorporates artificial intelligence to help people automate daily tasks. The platform aims to become an open and permissionless network that utilizes AI to create a decentralized system that employs machine learning to execute tasks on the blockchain.
Fetch.ai is essentially an interchain protocol that leverages the power of artificial intelligence to facilitate automated P2P applications without human intervention. It was launched in February 2019 through an Initial Exchange Offering (IEO) on Binance Launchpad.
The ecosystem is supported by a native token called FET, which is positioned as a digital currency and serves as the primary medium of exchange within the platform. Users must pay with FET to use any of Fetch.ai’s paid services.
Oasis Network (ROSE)
The Oasis network is a blockchain that operates on layer one and has been designed with versatility, scalability, and privacy in mind. To achieve this, the technology stack has been divided into different layers, with the consensus layer and execution layer being separated. This allows multiple ParaTimes to process transactions simultaneously while the ParaTime layer is fully decentralized, enabling anyone to build their ParaTime.
The network claims to be more efficient than para chains and sharding, and the ParaTime layer is their way of referring to the execution layer. The native cryptocurrency of the network is ROSE, which experienced significant growth at the start of 2023, much like other AI-focused projects.
The team has recently announced that they are working on building “responsible AI primitives” and are collaborating with industry leaders in different sectors to design and implement these primitives.
Ocean Protocol (OCEAN)
Lastly on our list is Ocean Protocol, a platform designed to create a marketplace on the blockchain connecting data providers and data consumers. The platform’s model is based on several innovations, including AI and tokenizing datasets and data services. This enables providers to monetize their data efficiently and effectively while consumers gain access to a convenient ecosystem of valuable information.
OCEAN is the cryptocurrency that powers the Ocean Protocol ecosystem.