AI Crypto Projects Skyrocket as These AI Tokens Hit All-Time Highs

2023/11/28 15:27:15

Key Highlights:

In January 2023, the average gain of AI tokens reached a staggering 169%, with a single token reaching a peak rise of 275.06%.
ed a staggering 169%, with a single token reaching a peak rise of 275.06%.

With the progress of technology, Artificial Intelligence (AI) has been seen as one of the most promising technologies of the 21st century. AI is finding growing applications, ranging from autonomous vehicles and smart furniture to sophisticated algorithms and text-based big data models, as well as intelligent search and drones powered by AI (UAVs). In the field of cryptocurrency, AI has started to deeply integrate with blockchain, bringing revolutionary changes to the world and giving rise to a series of new cryptocurrency projects.

According to market data, AI-based cryptocurrency projects have achieved a return on investment exceeding 50% in the past year. This success is primarily attributed to the AI's ability to provide highly efficient and secure transaction solutions, as well as offer users more tailored investment advice.

AI Token Surge: 2023、2024 Hype from Inception to Boom

Advancements in AI and the popularity of intelligent applications

Since 2011, driven by the rapid development of various information technologies, AI technology has begun to develop rapidly with graphics processing, speech recognition, text processing, human-machine interaction, and self-driving as external manifestations, bridging the science and application technology gap. In addition, the implementation of application scenarios such as ChatGPT and smart drones or unmanned aerial vehicles (UAVs) has ushered in a new climax of development.

Based on Guosen Securities research, the average daily active user of generative artificial intelligence applications such as ChatGPT, Gamma, Leonardo, Shopify, Meta, Vocalremover, and Snapchat reached 13.96 million, of which ChatGPT had a daily active user count of 54.1232 million at the top of the list in June 2023.

ChatGPT: 54.12 million daily active users in June 2023

Source: Guosen Securities Research

The Guosen Securities Drone Market Report showed that the global civilian drone (UAV) market reached 315.284 billion yuan in 2023, with a compound annual growth rate (CAGR) of 57.55%. Since 2016, artificial intelligence with autonomous vehicles and intelligent vision processing as the core has already been applied in the drone (UAV) market.

AI is the cornerstone of cutting-edge technology and applications in the field of drones (UVAs)

Source: Guosen Securities Research

As of 2023, an increasing number of industries are adopting AI on a large scale. This is evident in diverse areas such as everyday Internet applications, autonomous vehicles, smart home technology, and intelligent production processes. These advancements indicate that AI technology will significantly empower traditional industries and drive a new technological revolution.

The market position of AI tokens remains unfavorable despite support from AI technology

Early instances of AI and blockchain integration were evident in 2019. AI crypto projects like Fetch.AI and Veals (VLX) explored machine learning and AI-driven neural network technologies to enhance the fairness and operational efficiency of decentralized networks. However, the technology was still in its infancy, leading to most project teams being in an exploratory phase. The absence of compelling narratives and practical applications meant these AI-based projects remained largely undeveloped.

Furthermore, many of the current AI projects in the blockchain space are not directly linked to core AI technologies. For instance, The Graph (GRT) focuses on decentralized search, Render (RNDR) operates as a high-performance GPU rendering network, and Injective Protocol (INJ) functions as a Layer 2 decentralized protocol. Most AI-based cryptocurrency projects, including the ones mentioned, have emerged by leveraging the buzz around blockchain-AI integration, leading to the development of what are known as 'AI concept tokens.'

Some categorize the Worldcoin (WLD) project, founded by Sam Altman, who is also a co-founder of OpenAI (the organization behind ChatGPT), as an AI concept token. However, it is crucial to clarify that WLD primarily operates as a digital identity protocol, falling within the realm of Decentralized Identity (DID).

Setting aside the association with ChatGPT and its various virtual aspects, the current state of this AI-based project appears less than optimistic. As of October 18, 2023, there are 183 AI-based tokens in the market, with a total circulating market capitalization of $4.79 billion. In comparison to the crypto market’s size of $1.31 trillion, AI tokens represent only 0.37% of the total market share of cryptocurrencies. This suggests that AI tokens in the cryptocurrency market have a considerable journey ahead to gain significant traction.

183 AI tokens with a total circulating market capitalization of $4.79 billion: Top AI Tokens List

Source: CoinMarketCap

Price dynamics and influencing factors in the AI token market

Before the end of 2022, AI concept tokens have yet to gain systematic recognition. Even until August of this year, they have not attracted special attention from the regulatory authorities. Since the official release of ChatGPT, the crypto field has begun to receive widespread attention and pursuit of AI-based tokens. Some projects seized this opportunity to introduce the concept of AI.

Market data showed that before 2022, the price changes of AI tokens were significantly affected by the overall market, closely mirroring the trends of popular tokens. However, towards the end of 2022, ChatGPT garnered significant attention, fueling AI tokens to skyrocket which peaked in early 2023. As of January 2023, the average gain of AI tokens reached a staggering 169%, with a single token reaching a peak value of 275.06%.

As of January 2023, the average gain of 169% for AI tokens and a peak value of 275.06% for a single token.

Source: www.feixiaohao.com

Comparing the monthly growth data of Bitcoin and an AI token SingularityNET (AGIX) in the past two years reveals that in 2022, the price fluctuations of this AI token closely mirrored those of Bitcoin, with deviations consistently remaining within the 10% range. In January 2023, Bitcoin’s monthly growth was 39.98%, while AGIX reached a gain of 275.06%, and the deviation was as high as 235.08%. Even in February, the monthly growth deviation between the two still reached 146.28%.

Source: Baidu Index

Based on the data chart above, it’s evident that over the past year, Bitcoin's search index has remained stable, showing little variation in trend. In contrast, the search frequency for ChatGPT began to increase towards the end of 2022, continuing into 2023. This frequency reached its peak in February 2023, followed by a rapid decline.

This trend corresponds with the rise in Bitcoin and AI-related tokens from late 2022 to February 2023. It suggests that the surge in AI tokens at the start of the year was influenced by the news about ChatGPT. This impact appears to be continuous and predictable. Therefore, breakthroughs in various aspects of AI technology might potentially lead to a price rally in AI tokens.

Historical ROI and risk assessment of AI tokens

From historical data, the top eight AI tokens, including Injective (INJ), The Graph (GRT), Render (RNDR), Oasis Network (ROSE), Fetch.ai (FET), SingularityNET (AGIX), Akash Network ( AKT) and Ocean Protocol (OCEAN), have an average return on investment (ROI) of 767.2%, and the average return in the past year has been 230.3%. That is, if you invest in AI tokens in the past year and hold them, the average ROI might touch over 230.3%, which is much higher than the average ROI of 20% to 30% of mainstay cryptos in the past year. The historical gain change of mainstay AI tokens (compared to the ICO price) and the rise in the past year (as of October 18, 2023) are as follows:

Injective (INJ): All-time high of 3460.58%, up 475.73% in the past year;
Graph (GRT): All-time high of 250.00%, up 24.64% in the past year;
Render (RNDR): All-time high of 783.68%, up 253.90% in the past year;
Oasis Network (ROSE): All-time high of 192.22%, down 3.39% in the past year;
Fetch.ai (FET): All-time high of 290.08%, up 307.05% in the past year;
SingularityNET (AGIX): All-time high of 380%, up 339.57% in the past year;
Akash Network (AKT): All-time high of 446.14%, up 310.65% in the past year;
Ocean Protocol (OCEAN): All-time high of 336.33%, up 131.96% in the past year;

Source: www.feixiaohao.com

Despite the generally positive performance of AI tokens this year, their trends between March and October were not ideal since they were affected by factors such as project progress and capability, global risk preference, and other conditions. Following the decline in interest surrounding AI, AI tokens, which had previously surged in popularity, faced significant price fluctuations. During this period, the average price drop ranged from 30.32% to 49.2%. Concurrently, as prices dropped, investor interest in AI tokens also rapidly waned.

Source: Kaiko

Source: CoinGlass

Source: CoinGlass

A report from crypto data provider Kaiko showed that in September, the total open interest of five popular AI tokens, including GRT, RNDR, FET, OCEAN, and ROSE, dropped sharply from $170 million to $60 million. Therefore, investors should carefully formulate investment strategies based on market conditions and the performance of projects to ensure a reasonable reduction in investment risks.

Information and Indicators of Top 3 AI-Based Projects and Their Tokens

1. Injective (INJ)

Source: CoinMarketCap

Injective (INJ) is a decentralized exchange (DEX) protocol that provides services such as cross-chain margin trading, derivatives, foreign exchange, synthetics, and futures trading. The project completed $40 million in financing led by Jump Crypto in August 2022. Currently, INJ is the top-ranked AI token, with a current price of $14.45. Over the past 7 days, the token has seen a price increase of 9.67%. According to CoinMarketCap, its market capitalization stands at $1,210,516,141, placing it at the 43rd position in the cryptocurrency market rankings.

The main function of Injective (INJ) is to allow different developers to create decentralized applications (DApps) on its network. It is the only blockchain that enables automatic smart contract execution. Data showed that so far, the cumulative transaction amount of DApps built on the Injective (INJ) network has exceeded $7 billion, and more than 92 million on-chain transactions have been processed. Injective (INJ) supports cross-chain transactions and earning products, incentivizes getting profits through liquidity mining, and allows the creation of any derivatives market using only price feeds, thereby creating its unique value core different from competing products.

As of now, the Injective (INJ) has 20,661 members in its Telegram community, with an average number of daily active users of fewer than 164, and holds 18,730 addresses, with an average daily active address of fewer than 220, and active deposits at average levels for three consecutive months. As a Layer 2 sidechain solution, Injective (INJ) does not possess significant advantages. Furthermore, the DEX industry is characterized by transparent technology, making it difficult to establish long-term barriers. Intensive market competition and rapid changes pose substantial investment risks for individual projects. Investors should exercise caution and carefully consider these factors before making investment decisions.

y Highlights:

In January 2023, the average gain of AI tokens reached a staggering 169%, with a single token reaching a peak rise of 275.06%.
ed a staggering 169%, with a single token reaching a peak rise of 275.06%.

AI Token Surge: 2023、2024 Hype from Inception to Boom

Advancements in AI and the popularity of intelligent applications

ChatGPT: 54.12 million daily active users in June 2023

Source: Guosen Securities Research

AI is the cornerstone of cutting-edge technology and applications in the field of drones (UVAs)

Source: Guosen Securities Research

The market position of AI tokens remains unfavorable despite support from AI technology

183 AI tokens with a total circulating market capitalization of $4.79 billion: Top AI Tokens List

Source: CoinMarketCap

Price dynamics and influencing factors in the AI token market

As of January 2023, the average gain of 169% for AI tokens and a peak value of 275.06% for a single token.

Source: www.feixiaohao.com

Source: Baidu Index

Historical ROI and risk assessment of AI tokens

Injective (INJ): All-time high of 3460.58%, up 475.73% in the past year;
Graph (GRT): All-time high of 250.00%, up 24.64% in the past year;
Render (RNDR): All-time high of 783.68%, up 253.90% in the past year;
Oasis Network (ROSE): All-time high of 192.22%, down 3.39% in the past year;
Fetch.ai (FET): All-time high of 290.08%, up 307.05% in the past year;
SingularityNET (AGIX): All-time high of 380%, up 339.57% in the past year;
Akash Network (AKT): All-time high of 446.14%, up 310.65% in the past year;
Ocean Protocol (OCEAN): All-time high of 336.33%, up 131.96% in the past year;

Source: www.feixiaohao.com

Source: Kaiko

Source: CoinGlass

Source: CoinGlass

Information and Indicators of Top 3 AI-Based Projects and Their Tokens

1. Injective (INJ)

Source: CoinMarketCap

2. The Graph (GRT)

Source: CoinMarketCap

The Graph (GRT), known as the Web3 version of Google, is an indexing protocol for querying data for networks like Ethereum and IPFS. A total of $55 million in strategic financing has been completed in 2020 and 2022. Participating investors include Coinbase Ventures, Digital Currency Group, Tiger Global, Blockwall, Fenbushi Capital, etc. Currently, GRT is the second-ranked AI token, with a current price of $0.1052. Over the past 7 days, the token has seen a price increase of 5.43%. The market capitalization of GRT is $975,028,454 on CoinMarketCap, ranking 46th in the cryptocurrency market rankings.

The Graph (GRT) is to the crypto world what Google is to search engines. Currently, it needs to process more than 4 billion data query requests on cryptocurrency prices, historical trading volumes, and liquidity every month from Uniswap, Coingecko, Synthetix, etc. Due to its special search function, GRT faces users in the entire crypto field with a large user base and strong product scalability. The Graph relies on an incentivized node network to keep services running, and its value lies in whether there are enough users to use the current data network. Users can pay ETH or DAI for inquiry, and use GRT for final settlement to ensure the consistency of the entire protocol, which allows the core value of GRT to be highlighted and remain stable.

As of now, The Graph (GRT) has 21751 members in its Telegram community, with an average number of daily active users of fewer than 100, and holds 144340 addresses, with an average daily active address of fewer than 800, and active deposits at average levels for three consecutive months. Although The Graph (GRT) is the leader in data indexing, whether its actual value can support the current high valuation still needs to depend on The Graph's actual future performance.

3. Render (RNDR)

Source: CoinMarketCap

Render Network (RNDR) is the world’s largest distributed GPU computing and 3D rendering network with its parent company being a technical collaborator of Apple VR. It successfully raised $30 million in funding at the end of 2021, with investors including Multicoin and the Solana Foundation, among others. Currently, RNDR is the third-ranked AI token, with a current price of $2.25. Over the past 7 days, the token has seen a price increase of 1.27%. The market capitalization of RNDR is $837,553,576 on CoinMarketCap, ranking 52nd in the cryptocurrency market rankings. More information about what is Render Token?

Render Network (RNDR) possesses advanced cloud rendering technology and has created a distributed network consisting of millions of GPU devices, which has strong technical capabilities. However, due to its focus on a niche market with specialized requirements, its user base is relatively limited, which can restrict its growth potential and pace of development. As of now, The Graph (GRT) has 13290 members in its Telegram community, with an average number of daily active users of fewer than 134, and holds 39205 addresses, with an average daily active address of fewer than 421, and active deposits at relatively low levels. Although Render Network (RNDR) has strong technical capabilities, it has a limited market audience and its overall performance may be considered average. Therefore, investors should exercise caution and conduct thorough research before deciding to invest in this project.

Who Will Lead the AI Field in the Next Bull Market?

The integration of AI and blockchain has transitioned from the conceptual stage to practical applications. The remarkable usability of ChatGPT indicates the dawn of an era where AI powers blockchain networks. In the upcoming AI sector, those who can pioneer the exploration of AI use cases at an earlier stage will likely lead the entire track.

Source: Tokeninsight

According to the chart above, The Graph (GRT) has achieved a rating score of 68, surpassing other AI tokens, and emerged as the most promising cryptocurrency in the AI field. This evaluation is based on six dimensions: underlying technology and security (75.65%), token performance (61.93%), ecosystem development (61.45%), token economics (59.00%), roadmap and progress (63.67%), and team, partners, and investors (88.00%).

Conclusion

While the overall performance in the AI token sector remains underwhelming, the emergence of new AI paradigms suggests that this area could still experience significant market growth. It is crucial to possess potential tokens and develop a sound investment strategy, particularly in the market's early stages. Doing so ensures that you don't miss out on prime investment opportunities when the bull market materializes.

FAQ About AI Crypto Coins

Q: What are AI tokens?

AI tokens refer to tokens in blockchain or cryptocurrency projects related to Artificial Intelligence (AI). These tokens may be used to incentivize AI development, data sharing, training of machine learning models, or as a method of payment for specific AI services. For example, some blockchain projects may allow users to use AI tokens to purchase computing power or access advanced AI algorithms. In short, AI tokens are cryptocurrencies or assets that combine the fields of blockchain technology and artificial intelligence.

Q: Which AI tokens should I keep an eye on?

Currently, popular AI tokens in the market, such as The Graph (GRT), Render (RNDR), Fetch.ai (FET), Ocean Protocol (OCEAN), and Oasis Network (ROSE), are garnering attention due to their notable performance in specific areas. However, it is advisable to formulate a suitable investment strategy before investing. This includes considering investment risks, choosing a method that aligns with your financial situation, and engaging in prudent investment practices.

Q: Where can I buy these AI tokens?

There are multiple ways to acquire AI tokens. For newcomers to the crypto world, a prudent choice is to purchase them on FameEX, prioritizing asset security. The platform provides a variety of AI tokens for investors to buy.

1. Create and verify your cryptocurrency trading account

You need to create an account with simple steps before buying cryptocurrencies: Create a username and password and provide some personal information to complete the identification.

2. Fund your trading account

Next, you need to fund your trading account. FameEX exchange adopts the acceptance method of well-known cryptocurrency service providers to provide users with fiat currency deposit and withdrawal channels. Users can exchange fiat currencies into cryptocurrencies with service providers at better prices via debit cards, credit cards, or bank transfers.

3. Choose an AI token to invest in

You can trade AI tokens after your trading account is funded successfully. Enter the Trade page under Spot on the navigation bar, select a desired AI token, and then complete the transaction.

Disclaimer: The information provided in this article is for learning and reference only and does not constitute any investment advice. Please click Here for more details. Please conduct your own research and consult with a professional financial advisor before making any investment decisions. FameEX bears no responsibility for any direct or indirect losses arising from the use of or reliance on the information provided in this article.

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