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Cryptoverse: AI tokens surpass record-breaking bitcoin

Words reading "Artificial intelligence AI", miniature of robot and toy hand are depicted in this image shot December 14, 2023

March 19 (mod1s) - The artificial intelligence revolution has struck the crypto market with a bang.
Coins related to AI-focused crypto projects have soared with tech companies like Nvidia (NVDA.O), opens new tab, spurred by ravenous investor hunger for applications like machine-learning.
 
The ascent of several AI crypto tokens has exceeded even that of bitcoin over the last year as the world's largest cryptocurrency has rocketed to record heights.

Their aggregate market value has risen to $26.4 billion, from only $2.7 billion in April, according to CoinGecko statistics. Tokens related to these projects are up between 145% and 297% in the previous 30 days.
 
If the most bullish industry projections come to fruition, there might be more space to run, as some market experts suggest crypto and blockchain technology could help alleviate some of the AI sector's teething concerns such as privacy and a requirement for processing capacity.

"As both AI systems and blockchain networks continue to grow, we will see more and more use cases fusing together the two industries," said Markus Levin, co-founder of blockchain data storage business XYO Network.
 
The CoinDesk Indices Computing Index, which includes AI-linked tokens, has soared over 165% over the previous 12 months, beating even bitcoin's 151% ascent to record levels.
 
Trading volumes in AI tokens have also surged dramatically this year, Kaiko Research data indicated, reaching an all-time high of $3.8 billion in late February.

"There is a significant chance that ... AI applications will be crypto's raison d'être," fund manager VanEck's Matthew Sigel and Patrick Bush stated in a note.
 
Some of the leading blockchain initiatives at the present are the Render Network, a blockchain platform for peer-to-peer sharing of AI-generated images, Fetch.AI, a platform to create AI applications 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 Ahmad Shadid, founder of AI-focused blockchain firm io.net.

WINNERS AND LOSERS
 
AI-linked blockchain solutions encompass a broad array of services including payments, trading models, machine-generated non-fungible tokens and blockchain-based marketplaces for AI applications where customers pay developers in bitcoin.
 
Investment management VanEck has forecast that income from AI crypto projects might reach $10.2 billion by 2030 in their base case, and over $51 billion in their optimistic scenario.
 
VanEck alluded to the usage of crypto tokens as incentives, establishing physical processing infrastructure, data verification, and transparency in demonstrating digital ownership as main areas where blockchain technology adds real-world value to AI research.
 
Offering crypto tokens as incentives facilitates speedy scaling, said io's Shadid. His business aims to introduce a coin later this year.
 
"The reason we can scale fast is because of the token we have coming out," he continued. "The token incentivizes owners of physical infrastructure to bring their computers on to our network," Shadid continued.
 
Yet, much like with the AI boom itself, selecting winners and losers might be laden with hazard.
 
"We're still in the very early stages of AI networks integrating with blockchain-based networks, and the utility of a lot of tokens is still very much uncertain," said Levin.

Source: https://www.reuters.com/

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