How the popularity of artificial intelligence among investors affects the prices of cryptocurrencies?
ChatGPT, a billion-dollar AI chatbot from Microsoft, reached 100 million users in January, becoming the fastest growing internet application in history. According to analysts at UBS banking holding led by Lloyd Walmsley, the generative AI market could be “extremely large” and easily “pass over a trillion dollars,” writes Bloomberg .
Such hype and numerous speculations about what OpenAI ChatGPT could mean for technology and business are already familiar to those who have been following the cryptocurrency industry since at least 2021. During each of the bullish periods in the crypto market, a lot of headlines appear in the mass media about how blockchain technology and cryptocurrencies in particular will become a breakthrough for the whole world.
At the beginning of 2023, digital currencies and artificial intelligence created a unified narrative in the crypto asset market, and the internal tokens of AI-related projects continue to grow in value.
Cryptocurrency tycoon Justin Sun, head of the Huobi exchange and creator of the Tron (TRX) coin, posted on Twitter the idea of a mechanism for creating an “AI-centric decentralized payment system” for ChatGPT.
The implementation of smart contracts on the #TRON network allows for automated payments, further streamlining the payment process for AI developers. By combining AI technology with the security and efficiency of blockchain, AI developers can maximize their potential.
— H.E. Justin Sun🇬🇩🇩🇲🔥₮ (@justinsuntron) February 4, 2023
According to his idea, such an environment will allow the creation of a decentralized payment system “that will be safe, reliable, protected from hacking, censorship and capable of supporting AI.” This will build a new decentralized smart financial ecosystem, Sun wrote in a series of trending keyword-filled tweets outlining the plan.
Last week, OpenAI, the developer of ChatGPT, announced that it would begin charging a $20 monthly subscription to cover computing costs. Until that moment, the chatbot, launched in late November, remained free.
By combining AI technology with the security and efficiency of blockchain, AI developers will be able to maximize their potential, Sun concluded, adding that “Tron blockchain can provide the best infrastructure support for OpenAI, ChatGPT, and all AI developers.” TRX price did not respond to the manifesto.
Tokens are Growing in Price
In general, the coins of blockchain projects, in which artificial intelligence is involved in one way or another, since the beginning of the year turned out to be the group of the most successful in terms of crypto assets, along with the tokens of liquid staking service management.
The leader in terms of market capitalization in the category , according to CoinGecko, is the coin of the SingularityNET (AGIX) project. Over the past week alone, the asset has grown in price by almost 2.5 times, reaching 45 cents, although it was trading at 7 cents less than a month ago.
The developers of the service position it as “the first decentralized artificial intelligence market” based on the Cardano blockchain. At the time of publication of the material, the capitalization of AGIX exceeds $542 million.
The tokens of the other most capitalized projects in the category also continue to grow, despite the short-term fall in the rate of bitcoin and the crypto market as a whole. Machine learning platform Fetch.ai (FET) coin has risen in price by more than 65% over the past month, and the OCEAN token, used by the Ocean Protocol “data economy” project, has more than doubled since the beginning of January.
It is interesting that projects with a relatively low market capitalization also fall into the “narrative”. Due to lower liquidity, large purchases of their tokens inevitably lead to large price spikes. So, in just a day, the rate of the AIRI token, which belongs to the little-known aiRight platform, has increased several times, the developers of which declare the use of AI in the creation of non-fungible tokens (NFTs). A similar scenario was observed for the IMGNAI token, created to pay for the creation of anime-style images by the neural network of the project under the uncomplicated name Image Generation AI.
Not Only the Crypto Market
The success of ChatGPT has sparked a surge in investor interest in AI-based technologies, not just in the crypto market. The share price of struggling media company Buzzfeed surged last month after it announced plans to use artificial intelligence to create content. Similarly, shares of little-known public companies soared in price after they added the word Blockchain to the name at the peaks of the crypto market in early 2018 and late 2021.
Experts draw parallels between these scenarios. Speaking to Politico, Sheila Warren, executive director of innovation at the Crypto Council, said the role of ChatGPT is “too exaggerated,” comparing the hype around the chatbot to the “early days of cryptocurrencies” when it was around blockchain technology.
that there are many scenarios in which crypto governance is applicable. Every industry and jurisdiction can benefit from decentralization and the elimination of intermediaries. It is, in fact, a basic component of how we create community. Given the attention that financial services have received from the media, legislators, and the cryptocurrency sector itself, I believe that we have lost sight of the underlying, revolutionary change in our ecosystem, which is essentially about a new method of governing ourselves and our communities. CEO of the Crypto Council
ChatGPT. There is no denying that ChatGPT is a ton of fun and has a ton of potential. It is already becoming into a priceless tool for computer programmers. You can ask ChatGPT instead of visiting Stack Overflow these days.
But it’s still a child in many other fields of study and inquiry. It seems reasonable that the use cases are disproportionately biased towards technologists and engineers because it all depends on what is supplied into it. However, sociologists and literary scholars will tell you that while it may be enjoyable, it doesn’t actually provide you with any relevant knowledge.
At the same time, the hype around artificial intelligence is confirmed by numbers. In January, JPMorgan conducted its annual survey of professional traders on upcoming e-commerce trends. It was attended by 835 industry representatives from 60 regions of the world.
AI, according to the survey, outperforms all other major categories, with a 53% citation rate well ahead of API integration (14%) and blockchain (12%). Only 8% of respondents confirmed that they are trading in crypto assets.
