According to a recent report from data analytics company Kaiko, interest in AI coins has drastically declined in recent months. Most of the next-gen projects trending in 2023 are bottoming out in weekly trading volumes.
AI coins record lowest trading volume of the year
The Kaiko report, dated July 27, covered projects that are trending this year, such as Fetch.ai (FET), Injective (INJ), and Oasis Network (ROSE). The artificial intelligence projects in question show serious decreases in weekly transaction volumes. According to Kaiko’s findings, these coins recorded the lowest weekly trading volume since the beginning of the year. Other names on the red list include Render (RNDR), SingularityNET (AGIX), and Graph (GRT).
📈👀AI-related tokens have been losing momentum, hitting lowest weekly trade volume since Jan.🗓️ pic.twitter.com/299kh5im1j
— Kaiko (@KaikoData) July 27, 2023
The data also reflects the AI industry’s struggle to maintain its momentum. Analysis of the top five AI coins by market cap points to relatively flat performance. These projects are trying to make up for most of their losses compared to the previous week.
Reasons behind indifference
While the exact reason for the decline is unclear, several factors may have contributed to the observed decline in trading activity. First, the broader cryptocurrency market has been on the decline lately. This directly affects the flow of funds towards the AI sector.
In addition, certain AI industry-specific factors, such as regulatory issues, may also be responsible for the decline. Nevertheless, the superior features provided by the technology keep the long-term expectations for the industry alive.
The corporate sector will pour $450 billion into AI coins
ABI Research, a global technology intelligence company, presented a more positive scenario. The company estimated that more than $450 billion will flow into the business sector in twelve different verticals over the next seven years. According to the report, productive artificial intelligence has expanded rapidly in the business-to-consumer (B2C) market with applications such as:
- ChatGPT
- Google Bard
- Claude 2
- llama2
- midjourney
- stable diffusion
💲 generative #ai will add more than US$450 billion to the #enterprise market over the next seven years. To capture that, a robust strategy must be in place. Learn more: https://t.co/yPXIh7xd0M #artificialintelligence #employeeproductivity #aiautomation #generativeai
— ABI Research (@ABIresearch) July 27, 2023
Reece Hayden, Senior Analyst at ABI Research, has this to say on the future of the industry:
A number of job roles in content-heavy industries such as marketing and education are already experiencing disruptions in the first wave of adoption. The current wave of adoption will not be revolutionary. Instead, it will have an internal focus on increasing employee productivity by providing productive tools.
The AI adoption process happens in three waves.
The second wave exposes businesses to more outsourcing. As reliance on productive AI grows, organizations are creating products and services in this space. Meanwhile, industries such as healthcare and law are turning to artificial intelligence to answer customer questions.
The third wave of adoption plays an important role in value development areas. Industries such as manufacturing and logistics are using artificial intelligence to automate processes. However, this wave also draws attention to the negative consequences of AI.
While the evolution of the productive AI market is still uncertain, ABI Research predicts that it will become an important part of industries and business processes, particularly in the next seven years. Considering the global regulations, the impact of artificial intelligence is increasing day by day. At this point, cryptocoin.comYou can take a look at the Messari report dated February that we have quoted as
