Artificial intelligence coins have become this trend since ChatGPT had a sudden burst of popularity in December last year. Some AI tokens have gained 900% in as little as a month. It looks like altcoins operating in this space will be part of the 2023 bull. In this article, let’s list what features they have that will meet the expectations…
What are artificial intelligence altcoins?
AI cryptos are relatively new crypto projects trying to combine artificial intelligence with Blockchain technology. The fields of application are very diverse and range from finance to the gaming industry. The extent to which relevant projects rely on artificial intelligence also varies widely.
How does artificial intelligence develop cryptocurrencies?
In general, AI makes existing processes more efficient. Some examples:
- Automation: Many large and small processes can be simplified and accelerated with AI in the future. This specifically ranges from analyzing which cryptos are a good investment opportunity to automatically compiling data.
- Fraud detection: Artificial intelligence can recognize salient patterns that alert users to the high probability of fraud, for example with questionable wallet addresses or certain crypto projects.
- Autonomous processes: Smart contracts allow complex processes to be run on the Blockchain. Thanks to artificial intelligence, this can be taken to a new level in the future. For example, when smart contracts are automatically tailored to specific specifications or newly created.
- User experience: AI can recognize behavior and usage patterns and offer or optimize certain functions and services on that basis. An example is the automatic and accurate filling of transaction forms.
What disadvantages do AI-driven altcoins come with?
AI is powerful but comes with several disadvantages. Here are a few examples:
- Data theft: Artificial intelligence is based on vast amounts of data. Users have to provide a lot of sensitive personal and financial information to the algorithm. We know from experience that this data is not always used for the benefit of users.
- Bugs can happen: AI is programming based. A lot has happened in the field of artificial intelligence in recent years. However, the technology is not yet fully mature. Therefore, various risks remain when using it.
- Dependency increases: If you entrust the execution of certain processes to an automated helper, you make yourself dependent on it.
List of top AI-driven altcoins
It is difficult to make an objective assessment of crypto projects using AI. Here are 5 examples of projects that use artificial intelligence for different purposes:
- SingularityNET enables developers to publish their services on a decentralized platform. Developers can earn native AGIX tokens.
- Fetch.ai (FET) creates AI platforms and services to allow anyone to build and deploy AI services at scale.
- Ocean Protocol (OCEAN) allows anyone to publish, discover and consume data in a decentralized way.
- iExec (RLC), computing power, applications, datasets, etc. It aims to create a decentralized marketplace for computing assets such as
- Numerai (NMR) is building a decentralized data science platform on Ethereum that allows developers to compete in building effective machine learning prediction models.
How many AI crypto projects are there?
There are at least 60 cryptocurrencies currently utilizing artificial intelligence in some way. Given the current popularity of AI, we can see that many more crypto projects using this technology are being actively developed.
AI-focused altcoins that offer investment opportunities at current prices
The largest AI cryptos by market cap have outstripped Bitcoin in the past 30 days. Yet they are still 80-90% below their all-time high. cryptocoin.comWe have included the rallies of the day in this article.
Much of the uptrend we see is based on the current hype and overall trend reversal in the crypto market. Many investors want to catch the early train, which we can see when we look at the top 10 performing in 30-day price-performance rankings:
Among the top 10 AI cryptos, 6 have a market cap of just a few million dollars and 1 have a market cap of just $400,000. So there’s a lot of growth potential here. However, a low market cap also means that the price is easy to manipulate. In other words, a few whales can make the price rise or fall significantly.
Investment opportunities
Even though they have been in a bull run since January, the entire crypto industry related to AI is still very small. As we can see, the largest AI crypto project has a market cap of just over 200 million, barely making it into the top 100 in the overall ranking. According to analyst Ren & Heinrich, author of the content, AI cryptos that have been trending for about a month now offer huge future potential with a small volume.
